Oil Prices continue to fall downward amidst declining demands

Oil prices have taken further hits in the last few days as they edge below $45 dollars, their lowest in the last six months.

Oil prices dipped today, as the prices took a hit after inventories continue to be at the brim despite an OPEC-led initiative to cut production to tighten the market.

"The U.S. oil rig count continued to rise, up by 6 last week," Goldman Sachs said late on Friday to CNBC. “U.S. producers have added 431 oil rigs since a trough on May 27, 2016, Goldman said. If the rig count holds at current levels, the bank added, U.S. oil production would increase by 770,000 bpd between the fourth quarter of last year and the same quarter this year in the Permian, Eagle Ford, Bakken and Niobrara shale oil fields.”

Adding to the price worries is the dampening demand for oil, which continues to haunt the prices since the last few months. Despite the summer weather – the season which usually leads to a surge in demands for crude around the world – the market continues to lag in demand as Japan's customs-cleared crude oil imports fell 13.5 percent in May from the same month a year earlier, to 2.83 million bpd, the Ministry of Finance said on Monday.

India, which recently overtook Japan as Asia's second-biggest oil importer, took in 4.2 percent less crude oil in May than it did a year ago.

In China, which is challenging the United States as the world's biggest importer, oil demand growth has been slowing for some time, albeit from record levels, and analysts expect growth to slow further in coming months.

Brent crude futures were down 13 cents, or 0.3 percent, at $47.24 per barrel at 0406 GMT.

U.S. West Texas Intermediate (WTI) crude futures were down 15 cents, or 0.3 percent, at $44.59 per barrel.