China reported that its exports in diesel and gasoline grew by 181.8% and 145.2% year-over-year respectively in July, causing prices to drop on renewed concerns over a global supply glut.
Also, the Baker Hughes (BHI) weekly rig count was released on Friday, showing that U.S. drillers added 10 rigs to total 491 active units for the week ended August 19.
Last week, oil prices had rallied on speculation that OPEC members would reach a consensus on an output freeze when they meet in September at the International Energy Forum.
However, this morning analysts at Morgan Stanley released a bearish note saying it is "highly unlikely" the countries will reach an agreement.
Crude oil (WTI) was down 3.01% to $47.06 per barrel while Brent crude fell 2.93% to $49.39 per barrel.