The prices of crude oil declined on Thursday on the back of a record high production by the United States and weakening factory output in China and Japan.
International Brent crude prices were at $66.20 per barrel at 0525 GMT, after losing 19 cents, or 0.3 per cent from their last close.
The U.S. West Texas Intermediate crude oil futures were at $56.90 per barrel, declining four cents from their last settlement.
American crude oil production has surged to an unprecedented 12.1 million barrels per day over the last year.
Traders are also of the view that China’s weakening economy also weighed on oil prices.
Factory activity in China, the world’s biggest oil importer, shrank for a third straight month in February as export orders fell at the fastest pace since the global financial crisis a decade ago, official data showed on Thursday.
Amid weak demand from China, oil producers are having to cut prices.
Russia’s Surgutneftegaz is selling April-loading ESPO crude oil at the lowest level in three months, charging $2.20 to $2.40 per barrel over benchmark Dubai quotes.
In Japan, Asia’s second-biggest economy, factory output posted the biggest decline in a year in January as China’s slowdown affected the entire region.