Oil prices have fallen due to a lack of demand amid a weak global economic outlook.
Brent crude for October slipped 75 cents at $48.81 a barrel, while the US crude falling $1.00 to $44.41 a barrel, Reuters reported.
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According to analysts, global equities weakened due to weak manufacturing reports from China, US and Europe.
Oil prices witnessed strong rally in years, soaring more than 25% during last three days of trading in August until it was capped by weak Chinese economic data.
BNP Paribas oil analyst Harry Tchilinguirian told the news agency: "A rise of around 25% in three consecutive days was not going to be sustained."
On Tuesday, the American Petroleum Institute published industry data showing rising inventory, which led to a retreat in oil prices.
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The data highlighted a surge in US inventories by 7.6 million barrels to 456.9 million in the week to 28 August.
The US Energy Information Administration is expected to release official inventory data and until that time, the market is predicted to hold steady.
Tuesday’s Reuters poll of analysts anticipated Brent to average $62.30 a barrel in 2016 and US crude $57 a barrel.
