The U.S. Labor Day holiday helped keep trade thin.

Due to the global oversupply, oil prices have fallen by nearly 60% since June 2014 and have been under further pressure in recent weeks after concerns about a weakening Chinese economy caused turmoil in stock markets worldwide.

“Oil is only taking its cues from China this morning”, SEB chief commodity analyst Bjarne Schieldrop said.

In refined products, RBOB heating oil futures declined 0.008 dollar or 0.47 percent to trade at USD 1.589 a gallon at the NYMEX.

The primary Brent futures have been launched in 1988 as a approach for merchants and refineries to clean out risky worth actions and stabilise the market, which was being more and more dictated by Center East producers and the world’s largest shoppers within the US.

Brent crude for October delivery LCOc1 fell 37 cents to $49.24 a barrel as of 0656 GMT, after ending the previous session down $1.07, or 2.1 percent. Although it accounts for only about 1m barrels per day (bpd) of physical supply, compared with world demand of around 92m bpd, Brent crude remains the Dom Pérignon of tradable oil.

A surprise gain in U.S. crude stocks of 4.7-million barrels in the week to August 28, the biggest one-week rise since April, added to worry of an oil glut.

Losses were however pared by a report by oilfield services provider Baker Hughes who showed a decline in the number of oil rigs for the first time in seven weeks.

An increase in Fund rate would mean a stronger greenback, which will make crude oil more expensive to buy, which will consequently hurt demands.

Creating a futures contract is the logical subsequent step for China now that it has developed into a serious energy within the bodily marketplace for crude oil.

The bank also cut its growth and inflation forecasts for 2015-2017, noting the downside risks from low oil prices and the economic slowdown in China. “The realisation that the Fed might still decide to raise its’ Fund rate in 2015 has weakened the movement of markets across the globe”, said an analyst for IG Markets, Bernard Aw, in Singapore. “Prices could move towards $43.53 and $46.81 for WTI and Brent”.