Oil price extends drop to 7 month lows, despite OPEC cuts

Oil prices hold near seven-month lows, glut keeps dragging

Oil prices hit seven-month lows on global oversupply

Despite OPEC's 108% compliance in May with the deal to cut production, rising output from both Nigeria and Libya have added to the glut in supply.

Brent crude futures LCOc1 were down 11 cents, or 0.23 percent, at $47.26 per barrel at 0035 GMT.

Benchmark Brent LCOc1 is on its weakest since November 15 and dropped down $1.29 to a low of $45.62 a barrel.

The U.S. Energy Information Administration predicts global oil stocks will draw down in the third quarter of 2017 as a result of OPEC's output cuts.

Yardeni titled his blog post, "Drowning in Oil" - suggesting that advances in technology have contributed to higher production rates in the U.S.as demand world-wide may increasingly suffer from the use of alternative energy sources like solar. US inventories fell less than forecast two weeks ago, keeping supplies more than 100 million barrels above the five-year average, according to data from the Energy Information Administration on Wednesday.

Nigerian oil supply is also rising, industry figures show.

U.S. West Texas Intermediate crude futures were down 1 cent at $44.19 a barrel.

The country's oil output reached 730,000 barrels per day (bpd) in May, according to OPEC's Monthly Oil Market report in June. OPEC countries chose to cut production through 2018 to combat the supply glut, though not as much as speculators had hoped.

USA crude futures for August delivery were up 4 cents at US$43.55, having hit their lowest since September on Tuesday.

Experts reportedly are warning that oil prices might continue to tumble and could revisit lows hit more than a year ago.

The falling prices are a result of overproduction in the United States, Nigeria and Libya, Reuters reported, despite the Organization of Petrol Exporting Countries' pact with Russian Federation to reduce supply levels in the first six months of 2017.

Last week, OPEC countries and a group of other oil-producing nations, led by Russian Federation, agreed to extend the cuts by nine months until next March.

However, Saudi Arabia's Energy Minister, Khalid al-Falih said the oil market was heading in the right direction and just needed time to rebalance, the London-based newspaper Asharq al-Awsat reported on Monday.

A source told Reuters that compliance level among OPEC members was 108% while among other producers, it was 100%.

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