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Oil slips further below $50 as China, oversupply worries weigh

Published 14/10/2015, 13:49
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Investing.com - Oil eased further below $50 a barrel on Wednesday, falling for a third day, on concern a supply glut will persist and demand slow down as economic growth moderates in the world's second largest consumer China.

Chinese growth for the third quarter is expected to fall below 7% for the first time since the global financial crisis.

Brent crude slid to $49.56 a barrel as of 1052 GMT and U.S. crude eased to $46.57.

The International Energy Agency forecast Tuesday that oil demand growth would slow next year and a potential increase in supply from Iran would counter slowing output from the United States and other countries outside OPEC, keeping the market oversupplied.

The latest round of weekly U.S. supply reports is likely to suggest no end to the glut is yet in sight.

Analysts expect reports from industry group the American Petroleum Institute and the U.S. Department of Energy will show crude stocks rose by 2.9 million barrels.

The API releases its data at 2030 GMT, followed by the EIA on Thursday.

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