Crude oil prices continued to fall on Wednesday as China allowed its currency to drop for a second day, triggering concerns over its economic health just as oil production hit multi-year highs.
China's yuan hit a four-year low on Wednesday, slipping further a day after authorities devalued it to support its struggling economy.
Analysts noted that China's overall currency fall was relatively low by historical standards in foreign exchange markets, but were quick to add that China's case was different.
"It is China - the largest consumer of most commodities and a large producer of many - and it's the yuan, which rarely moves much against the US dollar and when it does, it traditionally appreciates not depreciates," Australian bank Macquarie said in a note to clients.
A lower yuan erodes Chinese purchasing power for dollar-denominated imports like oil, potentially hitting fuel demand.
Benchmark Brent crude oil LCOc1 was up 30 cents a barrel at $49.48 by 0930 GMT, well above a six-month intraday low of $48.24 hit on Monday but less than half its value a year ago.
US light crude oil CLc1 was up 30 cents at $43.38.
"OPEC's August 2015 report shows slightly increasing production," Singapore-based brokerage Phillip Futures said.
