Oil price fell below $65 a barrel on Monday amidst fresh oversupply concerns with some US shale oil operators looking to resume production.
Brent crude dropped 44 cents to $64.95 a barrel and US light crude fell 35 cents to $59.04 a barrel, Reuters reported.
The latest fall in prices was as a result of China’s move to strengthen its economy, indicating that some of the supplies could head towards China.
“China is the world’s top oil importer in April, ahead of the US.”
For the third time in six months, the country has cut interest rates in a bid to boost its economy.
The gains in the prices of US crude encouraged shale producers in the country to proceed with drilling and add rigs to the Permian basin for the first time in 2015.
For the 22nd week in a row, the number of active oil rigs slipped as a whole, but the decline rate has come down in recent weeks.
Morgan Stanley analysts said that the outlook is weighed by various factors such as increasing supplies in the physical market and signs of increasing activity in oil production in the US.
According to data on Friday, China is the world’s top oil importer in April and is ahead of the US.
Following a protest that lead to the closure of the Nafoura oilfield, oil production in Libya remained volatile.