Oil fell $1 to $48 a barrel this evening after US government data showed US crude supplies swelled to the highest level in nearly two years, and the World Bank cut its forecast for China's economic growth this year.
US light crude fell $1 to $48.16 a barrel while London Brent crude tumbled 97 cents to $47.27 a barrel.
In its weekly report, the US Energy Information Administration (EIA) said crude oil stocks rose 2.0 million barrels to 353.3 million last week - double the increase forecast by analysts. Meanwhile petrol supplies jumped by 3.2 million barrels, countering forecasts of a 1.2-million barrel drop.
Further weakness came after the World Bank cut its forecast for 2009 economic growth in China and said Beijing would undermine its own medium-term goals if it tried to offset the slowdown by further boosting investment.
Slumping demand and rising inventories have helped drag oil off record highs over $147 a barrel struck in July as the economic meltdown hit consumption across the globe.
