On Wednesday, oil futures are traded near multi-month lows because of concerns about the continuing oversaturation of the world oil market.
During European morning trade, on the ICE in London stock exchange, Brent crude for September delivery reached a session low of $ 52.62 a barrel, before recovering at $ 52.66, down 64 cents, or 1.21%.
A day earlier, in London Brent, futures fell to $ 52.28, the lowest level since January 30, before cutting losses and getting closed at $ 53.30, down 17 cents, or 0.32%.
Futures of Brent, traded in London, fell in July 18% amid fears that the resumption of exports of Iranian oil will aggravate the over-saturation in the global market.
Iran and six world powers have reached a long-awaited agreement in which Tehran sanctions will be lifted in exchange for limiting its nuclear program. Iran reportedly has in its reserves 30 million barrels of oil for export.
The reported record levels of oil exports from Iraq and increased production in Saudi Arabia also contributed to this.
On the New York Mercantile Exchange, WTI crude oil for September delivery reached a session low of $ 47.43 a barrel, while currently is traded at $ 47.49, down 49 cents, or 1.03%.
On Tuesday, crude oil futures on the Nymex fell to $ 46.68, the lowest level since March 23, before growing to $ 47.98, up 59 cents, or 1.24%.
After the close of trading on Tuesday, American Petroleum Institute, an industry group, said that the weekly US crude oil supplies fell 1.9 million barrels for the week ended July 24, instead of the expected decline by 0.7 million barrels per day.
Government data, expected on Wednesday, may show a decrease in US crude oil reserves for last week by 0.2 million barrels, while gasoline stocks are forecasted to have increased by 0.5 million barrels per day.
In July, the New York traded crude oil futures have fallen by 21%, under the pressure of continuous concerns about the increased level of oil production in the United States.
The offer in the world oil market is still ahead of demand due to the boom in shale oil in the US and after the adoption last year, of OPEC's decision not to cut production.
Today, the spread between Brent and WTI oil is $ 5.17 per barrel compared with $ 5.32 at the close of the previous session.
The USD index, which tracks the US currency against a basket of six major rivals, rose 0.2% to 96.96.