Oil prices slid in morning trading today after recent data showed ramped up production from members of the Organisation of the Petroleum Exporting Countries (Opec).
The global benchmark, Brent crude, was trading 0.52 per cent lower at $48.17 per barrel while US benchmark West Texas Intermediate (WTI) was down 0.54 per cent at $45.83 per barrel.
Despite the dip, oil markets are poised for a weekly gain. Crude prices have been stuck below $50 a barrel since May when Opec members agree to extend a production cut to March 2018 in order to re-balance the market.
A recent report showed Opec's compliance with its own supply cuts fell to a six-month low in June, causing global oil stocks to remain persistently high, according to analysts at Sanford C Bernstein.
"For the first half of 2017, OECD inventories are likely to finish higher, rather than lower ... The most plausible explanation is that Opec compliance has been not as high as has been suggested," Bernstein said.
"Opec will have to cut deeper and for longer if it wants to eliminate the inventory overhang and prices to rise," Bernstein said.