Oil futures had been trading lower but has recovered from the rout it faced for several weeks, following a contraction in demand and oversupply concerns.
Go deeper with GlobalData
Prices were weighed down by persisting supply glut and low demand for the commodity in Asian and US market.
North Sea Brent crude declined 10 cents at $48.71 a barrel, while the US crude oil futures, also known as West Texas Intermediate (WTI), dipped 20 cents at $42.42 a barrel, Reuters reported.
According to analysts, factors that contributed to the downward trend in the prices include global oversupply and record stockpile levels.
Analysts said the downward price trend may continue unless there was a reduction in supply globally.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataANZ bank told the news agency: "Any recovery in WTI prices from a six-year low may be short-lived with the US entering the slow demand period in September."
A report by the American Petroleum Institute on Tuesday revealed that crude stocks in the US declined by 2.3 million barrels in the week ended 14 August as against a Reuters poll of analysts, that expected a 800,000 barrels fall for the week.
PIRA Energy of US says that the prices would rise driven by strong demand for refined products, as well as autumn refinery maintenance.
