US crude hit new 12-year lows below $28 a barrel in Asia on Wednesday after the International Energy Agency warned that the oil market could “drown in oversupply”.
West Texas Intermediate (WTI), the US benchmark, struck a low of $27.92 a barrel at one point before recovering slightly.
It was trading at $27.96, down 50 cents, or 1.76 percent, at around 0200 GMT.
The last time WTI closed below $28 was in September 2003.
