Oil prices have fallen in spite of signs of slowing drilling activity in the US.

Brent crude futures fell 45 cents at $48.15 a barrel, while the US crude dipped 37 cents at $45.33 a barrel, Reuters reported.

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This month, the crude price is set for a drop of 11%.

"We’ve been discussing the possibility that oil needs to move down to $30, but I think that is only if you run out of storage capacity . Given that there is still quite substantial storage capacity, you still have flexibility."

For 2015 and 2016, most analysts have cut their forecasts for oil, mostly due to concerns of oversupply and tepid demand.

SEB chief commodity analyst Bjarne Schieldrop told the news agency: "We’ve been discussing the possibility that oil needs to move down to $30, but I think that is only if you run out of storage capacity and given that (there is) still quite substantial storage capacity, in my view you still have flexibility."

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Following a fall in emerging markets, the International Monetary Fund is expected to revise its global economic growth outlook downwards.

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Drilling in the US has been witnessed a fall for four straight weeks.

Earlier this month, Baker Hughes reported that the number of rigs engaged in exploration and production across country has fallen by 1.2% to 644.