Oil is diving after Barclays and JPMorgan turned bearish

Oil prices are diving on Tuesday after banks turned bearish on the commodity's prospects.

Brent is down 1.16% to $49.52 a barrel as of 7.05 a.m. BST (2.05 a.m. ET) and US crude is down 1.67% to $48.17 a barrel.

Here is how Brent looks:

Both Barclays and JPMorgan warned clients in notes this week that uncertainty around global growth will hit already shaky demand for the black stuff.

Analysts said that concerns over the global economy were weighing on the outlook for oil demand and on prices.

"The deterioration in the global economic outlook, financial market uncertainty and ripple effects on key areas of oil demand growth are likely to exacerbate already-lacklustre industrial demand growth trends," Barclays said in a note to clients.

JPMorgan also said in its latest oil market outlook that "macro-economic risks may weigh on oil prices," although the US bank added that oil prices would still likely rise between this year and the next as stocks are drawn down, and political risk and maturing oil fields tighten the market.

JPMorgan said it expected Brent and WTI to average $47.30 and $46.66 per barrel respectively this year and $56.75 a barrel for both in 2017. That is an increase of $2 each for 2016 and $1.75 a barrel for both benchmarks for 2017, compared with the bank's previous forecast.

In the latest sign of a glut in refined products, which traders say will reduce orders for crude oil, which is the most important refining feedstock, several tankers carrying gasoline-making components have dropped anchor off New York harbour, unable to discharge as onshore tanks are full.