Oil prices have fallen to their lowest in almost six months as a sharp drop in Chinese stock markets prompted additional concerns on the crude demand’s outlook in the country.

Brent fell 78 cents to $52.69 a barrel, and the US crude dropped 36 cents to $47.03 a barrel, Reuters reported.

China’s benchmark stock index lost 10% in the last two days of trade. It has a combined market capitalisation of $4.6tn.

"We’re not seeing the level of demand in the US one usually expects related to the summer drive-time. The world is awash with oil."

Analysts say demand for crude may not be sufficient to help stop a worldwide supply glut as Chinese economic growth is struggling to settle at 7%.

Investors are also concerned on increasing oil production globally as the market is being pumped excess supplies by about two million barrels per day.

Investors are awaiting for weekly data on US inventory levels to gauge the demand outlook.

A preliminary poll of analysts by Reuters has revealed that US commercial crude oil stocks likely dropped last week after crossing the five-year seasonal average build in the earlier week.

Analysts estimated that crude stocks declined around 300,000 barrels to 463.6 million barrels in the week ended 24 July.

Ayers Alliance chief investment officer Jonathan Barratt was quoted by the news agency as saying: "We’re not seeing the level of demand in the US one usually expects related to the summer drive-time. The world is awash with oil."