Oil Update: Oversupply worries causes prices to decline

Prices for oil went into a downward spiral yet again as worries mounting over-supply continue to drag the prices downward. The prices for oil saw an uptick on reaching their 2 ½ month highs on Thursday, but retreated into a decline of 1.5 percent.

The decline since Thursday has pushed the prices below 50 per barrel amidst concerns over oversupply.

Brent crude, the global benchmark, was down 30 cents, or 0.58 percent, at $51.60 per barrel by 0336 GMT.

U.S. West Texas Intermediate (WTI) crude was down 31 cents, or 0.64 percent, at $48.28 a barrel.

Despite the more than expected decline in US crude inventories, the glut continues to draw the prices down. Official data showed crude inventories in the United States, the world's top oil consumer, fell sharply by 6.5 million barrels in the week ending to Aug. 4, as refiners ramped up run rates to the highest in 12 years due to strong demand.

But doubts remain over whether enough crude would be consumed to end a global glut after the Organization of the Petroleum Exporting Countries (OPEC) reported on Thursday another increase in the oil cartel's production, even though it raised outlook for oil demand in 2018.