Brent crude futures also fell by 17 cents or 0.3% to $50.79 per barrel as concerns on US inventories continue to rise blocking any efforts being continuously made by the OPEC in cutting global production.
On March 22, 2017, at 10:30 AM EST, the EIA (U.S. Energy Information Administration) will release its crude oil inventory report for the week ending March 17, 2017.
The Organization of the Petroleum Exporting Countries is curbing its output by about 1.2 million barrels per day (bpd) from January 1 for six months, the first reduction in eight years.
The price for Brent crude oil was 1.4 percent below the previous close to $50.23 per barrel just before the start of trading in NY.
US oil drillers boosted the rig count by 14 to 631 last week, data from Baker Hughes showed.
"As such, the combination of robust demand and weaker global supply leading to rebalanced markets will not be de-railed by USA shale oil", said Jeremy Baker, senior commodity strategist at Vontobel Asset Management.
Brent crude, the worldwide benchmark, fell 35 cents to $50.61 per barrel by 0907 GMT, heading back to its lowest level since OPEC announced on November 30 its plan for cuts. The more-actively traded May contract dropped 56 cents to $48.75.
West Texas Intermediate, the USA benchmark for the price of oil, was lower by 1.37 percent, declining to $47.58 per barrel. The nation's crude output has climbed to 9.1 million barrels a day, the most since February past year, according to the Energy Information Administration.
Oil prices dipped on Wednesday as rising crude stocks in the United States underscored an ongoing global fuel supply overhang despite an OPEC-led effort to cut output.
Crude stocks at the Cushing, Oklahoma, delivery hub for USA crude futures rose 1.4 million barrels, the EIA said.
The spike repeated a pattern that has emerged in the last 10 days after a market rout that saw big speculators exit bullish positions after weeks of persistently high inventory figures.
Oil prices ended lower onWednesday as government data showed US crude stockpiles gainedmore than expected last week.
Commerzbank said that OPEC cuts would need to last into the fourth quarter to achieve the group's goal of reducing record oil stockpiles in industrialized nations to their five-year average.
Shipments fell 3.8 percent to 7.7 million barrels a day, according to data published Monday on the Joint Organisations Data Initiative website.