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London - World oil prices fell further on Wednesday, one day after the International Energy Agency (IEA) forecast the global crude oversupply will persist into next year.
Brent North Sea crude for delivery in November dipped 39 cents to stand at $48.85 per barrel in early afternoon London deals.
US benchmark West Texas Intermediate for delivery in November slid 18c to $46.48 per barrel compared with Tuesday's close.
"Oil prices are continuing to fall," said Commerzbank analyst Carsten Fritsch.
"The International Energy Agency's latest estimates for the oil market have been weighing."
He added: "The IEA sees the oil market as being oversupplied well into next year, additional oil from Iran possibly playing its part in this once sanctions are lifted.
"It is our opinion that the oversupply could be reduced more quickly, as non-OPEC supply will probably decrease more steeply than previously anticipated."
Iran is expected to start ramping up oil exports by late November after a political agreement with major world powers in July to curb its nuclear programme in exchange for a lifting of crippling economic sanctions.
Demand is struggling to cope with the oversupply amid a slowdown in the global economy this year and is expected to continue into next year.
The monthly IEA report released Tuesday projected that world demand growth would slow from 1.8 million barrels per day in 2015 to 1.2 million bpd in 2016.
"A projected marked slowdown in demand growth next year and the anticipated arrival of additional Iranian barrels - should international sanctions be eased - are likely to keep the market oversupplied through 2016," the Paris-based IEA said.
The market is also waiting for the release later on Wednesday of US retail sales numbers to further gauge the health of the American economy.
Ang said the retail figures could impact the strength of the US dollar which could also affect the movement of dollar-priced crude oil.
A weaker dollar makes oil cheaper on the international market, while a stronger greenback makes the commodity more expensive.
US crude inventories are due out on Thursday after the release of weekly data was pushed back by a day due to a public holiday in the United States on Monday.
A Bloomberg News survey showed stockpiles are expected to have increased by 2.58 million barrels in the week to October 9. A rise typically indicates weaker demand in the United States, the world's top oil consuming nation.
