A group of Goldman Sachs analysts have said that the financial crisis has moved into its critical third phase.
Oil production outside Opec forecast to drop by 500,000 barrels per day in 2016.
US gross domestic product (GDP) increased at a 3.7% annualised rate, above economists' estimates, in Q2.
Brent crude is down 2.38% at $44.38 per barrel as at 4.15am GMT, while WTI crude declined 2.92% at $39.47.
Glencore's earnings also fell 29% to $4.6bn
Brent crude is trading down 0.27% at $48.61 per barrel as at 5.48 am GMT, while WTI crude fell 0.14% at $41.81.
More US drilling is expected after the government announced its approval of limited crude oil sales to Mexico.
US is working hard to address domestic oil glut caused by its shale boom.
Iran will discuss its new oil contract models and 45 oil and gas projects including oil and gas exploration with international oil companies at December conference.
Brent oil was at its lowest since January as Opec output hit a recent high in July
The cuts in spending and the increased M&A activity in the market can be attributed to the falling oil price.
Gold prices closed at $1,085.50 per ounce on 24 July, down 0.79% or $8.60, on Comex.
Bullion is trading down 1.11% at 1,091.20 per ounce on Comex as at 6.51am GMT.
Brent Crude fell by 1.52% after marathon talks by P5+1 officials resulted in a deal for Iran.
Demand would decline in 2016 while supply from Opec producers projected to remain at high levels.