Oil Update: Prices hold to the 7 - month lows

The oil prices hold onto their 7 month lows as the rising inventories have dragged the oil prices down. The prices have been lowest since the OPEC announced to cut the oil output for six months which it went on to extend in the OPEC's May meetings.

Both benchmarks are down around 15 percent since late May, when OPEC, Russia and other producers extended by nine months the cut in output by 1.8 million barrels per day (bpd).

Brent futures were up 2 cents at $46.93 at 0611 GMT. On Monday, they fell 46 cents, or 1 percent, to settle at $46.91 a barrel.

U.S. West Texas Intermediate crude futures were down 3 cents at$44.17 a barrel. They declined 54 cents, or 1.2 percent in the previous session, to settle at $44.20 per barrel, the lowest close since Nov. 14. The July contract will expire on Tuesday and August will become the front-month.

OPEC supplies in May jumped up prompting the leaders of OPEC leaders to extend their cuts further into the future. The output recovered in May due to excessive production from two countries exempted from the OPEC led cuts; Libya and Nigeria. Both benchmarks are down around 15 percent since late May, when OPEC, Russia and other producers extended by nine months the cut in output by 1.8 million barrels per day (bpd).

However, the Saudi Energy Minister remained confident as he told CNBC, "In my opinion, market fundamentals are going in the right direction, but in light of the large surplus in stockpiles over the past years, the cut needs time to take effect."