Crude oil prices have fallen due to uncertainty over global demand outlook for the commodity.
November Brent crude futures dropped 72 cents at $48.20 a barrel, while the US West Texas Intermediate (WTI) crude futures declined $1.03 at $45.92 a barrel, reported Reuters.
The last week’s Federal Reserve’s policy meeting led to an uncertainty over the outlook for demand in China, as well as the resilience of the US economy.
In addition, the Federal Reserve decided to leave its key interest rates unchanged for the time being.
The oil market is already seeing an unprecedented oversupply, halving its value to a six-year low.
The International Energy Agency (IEA) is set to issue bullish forecasts for the market balance in 2016 as it is obvious that shale production in the US is starting to be impacted by weak oil prices.
According to Capital Economics analyst Thomas Pew, during the last couple of months alone, US production witnessed a loss of some half a million barrels of oil a day.
The premium of physical barrels of oil was knocked off a six-week peak yesterday due to a lack in availability of fresh tanker fixtures to ship North Sea crude to key Asian customers.