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Oil falls through $28 per barrel as oversupply fears weigh

Published 2016-01-20, 07:44 a/m
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Investing.com - Crude futures slumped again on Wednesday, with U.S. oil dropping more than 3% toward $27 a barrel and its lowest since 2003, on worries about global oversupply.

That came after the International Energy Agency, which advises industrialized countries on energy policy, warned that oil markets could "drown in oversupply" in 2016.

U.S. crude futures hit lows of $28.46 a barrel, the lowest since September 2003 and were last at $28.8, down 2.6% for the day.

Brent futures fell to lows of $27.79 before easing back to $28.22 per barrel, down 1.91%.

Inventory data from industry group the American Petroleum Institute is due out later on Wednesday. Official data from the U.S. Department of Energy's Energy Information Administration will be out on Thursday, a day late due to a public holiday. U.S. commercial crude oil stocks are forecast to have risen by 3 million barrels last week.

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