As of 09:56 a.m. EDT on Tuesday, WTI Crude was down 0.28 percent at $53.10, trading at its lowest levels since the middle of February, while Brent Crude was down 0.49 percent at $60.98-breaking below $61 a barrel and slumping earlier in the day to its lowest level since January this year.
Nevertheless, sentiment on prices remains dim as fresh signs emerge of a stalling global economy and ongoing concerns about growing U.S. crude supply. Brent was last down $1.78, or 2.9 per cent, at $60.19 a barrel.
Amid surging output, USA commercial crude oil inventories surged by 6.8 million in week to May 31, to 483.26 million barrels, their highest levels since July 2017.
The price action suggests calm has returned to the markets after a little bit of a panic sell on Wednesday in reaction to an unexpected build in USA stockpiles.
But on Thursday oil prices followed U.S. stocks higher after Bloomberg News reported the United States is considering a delay in the tariffs on Mexico as talks continue.
The severe downturn in a matter of weeks comes as oil traders fret over slowing global growth that the Trump administration's unresolved trade disputes with China and Mexico have only exacerbated.
Crude oil prices plunged sharply in the previous session after data showed a large increase in USA crude stockpiles last week.
"The addition of new US supply and its integration into the global market" would pose a "multi-year threat to the market share and revenues" of OPEC+ producers, Goldman Sachs noted.
In addition to the OPEC+ cuts, supply has also been limited by USA sanctions on oil exports from Iran and Venezuela. Iraqi Oil Minister Thamer Ghadhban said on Friday that OPEC and its allies were most likely to extend their global oil output deal until the end of the year, RIA news agency reported.
"Demand is weakening much more rapidly than we had expected".
The Middle East-dominated producer club of the Organization of the Petroleum Exporting Countries (OPEC) as well as some non-affiliated producers including Russian Federation, known as OPEC+, have been withholding oil supply since the start of the year to prop up the market. The group plans to decide later this month or in early July whether to continue the supply curbs.