Investing.com - Oil prices succumbed to concerns of a supply overhang on Thursday, erasing modest early gains as a persistent global surplus of crude continued to pressure prices.
U.S. oil futures plunged below $27 dollars a barrel on Wednesday for the first time since 2003, caught in a broad slump across world financial markets as investors worried that a huge oversupply in crude was coinciding with an economic slowdown, especially in China.
Oil prices erased early gains on Thursday, with U.S. crude futures trading at $28.08 per barrel at 09.56 GMT, down 0.97%.
International benchmark Brent was down 0.91% at $27.63, after also hitting its lowest since 2003 in the previous session.
In addition to worries about global oversupply, concerns are growing that China's economy could slow further and cut demand in the world's second-largest oil consumer.