Oil Update: Oil Prices fall amidst global oversupply reports

Oil prices took a dip Thursday as worries mounted over oil glut due to the non compliance of OPEC members on agreed cuts. IEA, world energy watchdog, warned that the long waited rebalancing of the oil prices may take a lot more time to come. As the prices continue to stay at record low levels, the non-compliance to agreed cuts may halt the expected price reversal.

The markets have taken a hit in the last 5 years as the prices of WTI in the international markets have fall from 2012 to 2016 by 41.4 percent. The prices since Jan ‘17, have fallen more than 15 percent in the ongoing year.

Brent crude fell 34 cents to $47.40 a barrel by 0834 GMT and U.S. light crude was down 32 cents at $45.17.

West Texas Intermediate (WTI) crude futures were at $45.47 per barrel, down 4 cents from the previous session's close.

The prices for the month are marred by two hitches: a dramatic recovery in oil production from Libya and Nigeria and a lower rate of compliance by OPEC with its own output agreement.

The OPEC estimated that the world would require only 32.2 million barrels per day (bpd) of its crude next year, down by 60,000 bpd from this year and about 400,000 bpd less than it pumped in June.