Oil market dogged by supply glut

World oil (Other OTC: WOGI - news) prices declined Tuesday, falling for the fifth straight session on long-running worries about a supply glut and a weak global economic outlook, dealers said.

In midday deals in London, Brent North Sea crude for December dipped 16 cents to $47.35 a barrel.

US benchmark West Texas Intermediate for delivery in December retreated 16 cents to $44.03 a barrel compared with Monday's close.

"Crude oil prices continue to drift lower," noted Petromatrix analyst Olivier Jakob.

The market had fallen on Monday also as traders weighed global growth forecasts and weak Chinese crude imports against abundant supplies.

A weekend report from China, the world's second biggest economy and number-one energy user, showed exports and imports -- particularly of crude -- tumbled last month.

And on Tuesday fresh figures showed inflation in the country slowed further in October, compounding fears about the nation's economic outlook.

Adding to the selling pressure was news the Organisation for Economic Development and Cooperation (OECD) had cut its growth outlook for the world economy for this year and next.

Traders are also keeping an eye on a US stockpiles report from the Energy Information Administration due out later in the week, looking for any signs of a pick-up in demand.

Prices have plunged from levels above $100 over the past year owing to a supply glut, weak demand, a slowdown in China's economic growth and a refusal by production cartel OPEC to cut output..