Investing.com - U.S. oil moved sharply lower on Friday, as news this week of a rise in U.S. oil production weighed heavily on the commodity.
U.S. crude futures for August delivery were down 3.03% at $44.14 a barrel, the lowest since June 28.
On the ICE Futures Exchange in London, the September Brent lost 2.95% to $46.71 a barrel, also the lowest since June 28.
The Energy Information Administration said U.S. crude inventories fell by 6.299 million barrels in the week ended June 30, compared to expectations for a drawdown of 2.28 million barrels.
However, the upbeat report was offset by news of a 1% increase in weekly U.S. oil production to 9.34 million barrels per day (bpd).
The data came a day after the American Petroleum Institute said that U.S. crude inventories fell by 5.8 million barrels in the week ended June 30 to 503.7 million.
Oil markets remain oversupplied despite a pledge by the Organization of the Petroleum Exporting Countries to cut production from January of this year until March 2018 in a bid to support the market.
Data on Wednesday showed that exports by OPEC rose for a second month in June, adding to doubts over whether the group can do enough to tighten the market.
The group's efforts to rebalance the market have been undermined by rising production from Libya and Nigeria, which are exempt from the output-cut agreement and by increasing shale production in the U.S.