The West Texas Intermediate oil futures dropped for the third day in a row, after the U.S crude stockpiles increased and the API reports indicated that inventories rose at its most in over four years.
WTI slid by 1 percent in New York after crude supplies increased by 8.97 million barrels last week, according to reports by the American Petroleum Institute.
Investors are awaiting reports by the Energy Information Administration (EIA) which is expected to show an increase by 550,000 barrels last week.
WTI crude traded at a low 0.97% to $94.46 a barrel, while Brent Oil traded at 0.70% to $102.24 a barrel, both as of 5:29am GMT.
According to reports released from API, last week crude oil supplies increased by 8.97 million barrels, the biggest increase since 2009. Distillate-fuel stockpiles also increased by 199,000 barrels last week, the API said.
The Organization of Petroleum Exporting Countries (OPEC) reserved its forecast for the year unchanged. According to reports released by OPEC, the global oil demand is expected to increase by 780,000 barrels a day to 89.7 million a day.
OPEC has boosted production by 106,000 barrels a day to 30.57 million a day last month.
WTI crude futures for July dropped to a low 92 cents to $94.46 a barrel in electronic trading .The European benchmark rate was at $7.57 to WTI futures.
With the high US oil production, the global demand for oil continues to remain weak in the market.
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