Futures were little changed in NY after capping the longest run of weekly declines since August 2015.
Libya is pumping the most crude in four years after a deal with Wintershall AG enabled at least two fields to resume production.
Crude oil prices plummeted to their lowest level in seven months on Tuesday as rising global oversupply continues to worry investors, APA reports quoting Anadolu agency.
OPEC-members Nigeria and Libya were exempted from supply cuts because unrest had curbed their output.
"So we should not be surprised that the output cuts agreement was extended, but oil started to decline on the same day".
US West Texas Intermediate crude futures were down 1 cent at $44.19 a barrel.
Brent and West Texas Intermediate crudes, down nearly 15 percent since late May, are both trading in contango, where forward prices get higher all the way into the next decade.
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Total volume traded was about 83 percent above the 100-day average.
Brent for August settlement fell 46 cents to settle at US$46.91 a barrel on the London-based ICE Futures Europe exchange, after dropping 1.6 per cent last week. That would also put WTI prices in bear-market territory-defined as a drop of at least 20% from a recent peak on February 21, when crude settled at $54.33 a barrel.
The report from Baker Hughes shows that the numbers of operating rigs in the United States rose for the 22nd consecutive week.
On Wednesday, the Energy Information Administration, a part of the Department of Energy, released its weekly report on USA crude oil inventories showing a decline of 1.7 million barrels for the week ending June 9. The International Energy Agency warned last week that the US will lead a surge in non-OPEC supply next year that will outpace growth in global demand.
Oil prices have now dropped to the levels they traded before OPEC and 11 non-OPEC producers agreed to a production cut deal in an effort to kill the glut and push prices up.
"In my opinion, market fundamentals are going in the right direction, but in light of the large surplus in stockpiles over the past years, the cut needs time to take effect", he told the newspaper in an interview. Contrary to the predictions of nearly all experts, Libya's production has climbed a wall of crisis in recent months to 885,000 barrels a day last week, roughly triple its production of only a year ago.
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