Oil extends slide to below $30 as oversupply worries return

Crude futures fell today, dropping below $30 a barrel and extending the previous day's losses by more than 2 percent, as fresh worries about oversupply from top producers Saudi Arabia and Iraq spooked the market. Global benchmark Brent crude  lost 72 cents, or 2.4 percent, to $29.78 a barrel  after hitting a session low at $29.76 a barrel. It settled down $1.68 at $30.50 in the previous session, 5.2 percent below its closing price on Friday. U.S. crude fell 78 cents, or 2.6 percent, to $29.56 a barrel, after hitting a session low at $29.50. It fell $1.85, or 5.8 percent, to $30.34 a day earlier. "Technical short-covering and a cold spell in the United States and some parts of the northern hemisphere had helped prices rally temporarily, most of which was wiped out if you look at yesterday's prices," said Kang Yoo-jin, a commodities analyst at NH Investment and Securities based in Seoul. "Psychological factors have driven the severe volatility in the market," added Kang, who said the situation was likely to persist until concerns over oversupply were lifted. Iraq's oil production hit a record in December, as output increased from the central and southern fields, an oil ministry...

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