US oil prices have taken a further fall following a 6% drop in Chinese stock markets.
North Sea Brent stood at $48.39 a barrel, down 35 cents, while the US crude futures were 35 cents weaker at $41.52 a barrel, Reuters reported.
Due to a weak yuan against the dollar, Chinese stocks tumbled and added to concerns that Beijing may further devalue the currency.
The move is expected to decrease consumption and import levels of the world’s largest energy consumer.
ANZ bank expects an increase in the US stockpiles in coming months as refiners reduce operations for maintenance.
The bank told the news agency: "Fundamentals suggest downside risks still remain in key markets, particularly iron ore and crude oil, in the months ahead."
A further fall in US prices may benefit many oil traders as they are positioning themselves to profit from it.
A survey conducted by Reuters on Monday showed that last week, commercial crude oil and gasoline inventories in the US slipped while distillate inventories witnessed an increase.
BMI Research anticipates that oil prices will remain under pressure until 2018 and supply growth for the next two years is likely to exceed the expansion in global consumption.