Crude oil (WTI) is declining by 0.98% to $59.37 per barrel and Brent crude is falling by 1.89% to $62.66 per barrel this morning, according to the CNBC.com index.
Oil prices are being pushed into the red by a rise in the dollar and investors shifting their focus back to the global oversupply, The Wall Street Journal reports.
As the dollar gains commodities priced in the greenback can become more expensive to those that hold other currencies.
Saudi Arabia is said to be considering raising its production output and Libya too may increase its production adding to the oversupply, The Journal said, noting that currently Iraq is producing at almost record levels.
"The fact remains that supply is continuing to outstrip demand. It is very difficult to see how the massive oversupply situation is going to reverse in the short to medium term," analyst Dominick Chirichella of the Energy Management Institute said in a note, The Journal added.
Seadrill is a Hamilton, Bermuda-based offshore drilling contractor that offers offshore drilling services to the oil and gas industry.