On February 10, 2016, the EIA (U.S. Energy Information Administration) stated that the weekly United States crude oil production fell slightly by 28,000 bpd (barrels per day) to 9.19 MMbpd (million barrels per day) during the week ending February 5, 2016.
According to the International Energy Agency, the Organization of Petroleum Exporting Countries is not likely to halt an agreement with other oil suppliers to trim down a growing production.
"Supplies from the group during January stood almost 1.7 million bpd higher year-on-year".
Record US supply figures, the prospects of weaker demand, and a forecast by Goldman Sachs that the price will stay low for the rest of this year all helped push the price down.
Oil prices have fallen nearly 75% since mid-2014 as producers pump 1-2 million barrels of crude every day in excess of demand, just as China's economy grows at its lowest rate in a generation. While production in non-OPEC countries decreased by 0.1 million barrels per day, the output of OPEC countries, on the contrary, increasing by 0.13 million barrels per day.
"Given the falls that we have seen over the last three trading sessions, it is a little surprise to see such aggressive selling interest during our time zone", said Michael McCarthy, chief market analyst at CMC Markets in Australia.
In late afternoon deals in London, Brent North Sea crude for delivery in April dived Dollars 2.25 to USD 30.63 per barrel. It also hasn't changed its view that non-OPEC production will drop by 600,000 barrels this year, led by sharp declines in USA shale production.
Oil prices rebounded on bargain-buying in Asia on Wednesday after the previous day's plunge but analysts warned any gains would be limited as the global glut that has hammered markets showed no sign of letting up.
"Global petroleum markets remain under pressure on Thursday, with investors increasingly fearful of recession", said Tim Evans of Citi Futures.