Oil prices dipped on Thursday, today 18th May 2017, weighed down by plentiful supplies despite an ongoing effort led by OPEC to cut production in order to tighten the market and prop up prices. Brent crude futures were down 21 cents, or 0.4 percent, from their last close at $52 per barrel at 0148 GMT. US West Texas Intermediate (WTI) crude futures were at $48.88, down 19 cents, or 0.4 percent.
The U.S. Energy Information Administration said on Wednesday that crude inventories fell 1.8 million barrels for the week to May 12, to 520.8 million barrels.
However, the drawdown was smaller than expected, and many traders say there is still more oil in the system than the market can absorb.
Overall oil supplies remain ample, with large amounts of crude from the United States and other producers being shipped to the big consumer regions in northern Asia, undermining OPEC-led efforts to tighten the market.
The Organization of the Petroleum Exporting Countries (OPEC) and some other producers including Russia have pledged to cut production by almost 1.8 million barrels per day (bpd) during the first half of 2016, a deal likely to be extended until the end of March 2018.