Oil prices hits multi-month lows after the release of the U.S. labour market data as the U.S. dollar strengthen. The U.S. economy added 215,000 jobs in July, missing expectations for a rise of 223,000 jobs, after a gain of 231,000 jobs in June. June's figure was revised up from a rise of 223,000 jobs.

The U.S. unemployment rate remained unchanged at 5.3% in July, in line with expectations. It was the lowest level since April 2008.

Average hourly earnings rose 0.2% in July, in line with forecasts, after a flat reading in June.

Concerns over the global oil glut grow due to a global economic slowdown and a nuclear deal with Iran and as oil production continues to increase.

Market participants are awaiting the release of the number of active U.S. rigs later in the day.

WTI crude oil for September delivery dropped to $43.94 a barrel on the New York Mercantile Exchange.

Brent crude oil for September fell to $48.89 a barrel on ICE Futures Europe.