Technoglitch
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Oil dropped to $30 a barrel on Tuesday, trading within sight of a 12-year low on concerns about excess supply and more signs of a Chinese economic slowdown.
An oil official in Kuwait downplayed the prospect of an emergency OPEC meeting and predicted 2016 would be tough with prices remaining low - underlining the slim chance of any deal among exporters to tackle excess supply.
Brent crude fell 62 cents to $29.88 a barrel by 0951 GMT. It reached $27.10, its lowest since November 2003, on Jan. 20. U.S. crude was down 54 cents at $29.80.
"The renewed wave of selling was sparked by another increase in risk aversion," Commerzbank analyst Carsten Fritsch said. "News of record-high oil supply from Iraq put pressure on prices."
Demand concerns also weighed. China's annual rail freight volume fell 11.9 percent in 2015 versus a drop of 3.9 percent in 2014, adding to worries about contracting economic activity in the second-largest oil consumer.
"Fears of a sharp slowdown in economic growth, particularly in China, are dragging down global stock markets from arguably overheated levels," analysts at Energy Aspects said in a report. "This is weighing on other risky assets, including oil."
Oil rises further above $30 on hopes of deal to tackle glut| Reuters
An oil official in Kuwait downplayed the prospect of an emergency OPEC meeting and predicted 2016 would be tough with prices remaining low - underlining the slim chance of any deal among exporters to tackle excess supply.
Brent crude fell 62 cents to $29.88 a barrel by 0951 GMT. It reached $27.10, its lowest since November 2003, on Jan. 20. U.S. crude was down 54 cents at $29.80.
"The renewed wave of selling was sparked by another increase in risk aversion," Commerzbank analyst Carsten Fritsch said. "News of record-high oil supply from Iraq put pressure on prices."
Demand concerns also weighed. China's annual rail freight volume fell 11.9 percent in 2015 versus a drop of 3.9 percent in 2014, adding to worries about contracting economic activity in the second-largest oil consumer.
"Fears of a sharp slowdown in economic growth, particularly in China, are dragging down global stock markets from arguably overheated levels," analysts at Energy Aspects said in a report. "This is weighing on other risky assets, including oil."
Oil rises further above $30 on hopes of deal to tackle glut| Reuters
