That came as the International Energy Agency, which advises industrialized countries on energy policy, warned on Tuesday that oil markets could "drown in oversupply".
US crude futures were trading down 46 cents at USD 28.00 a barrel at 0136 GMT (2036 EDT), after dropping to USD 27.92 earlier in the session - a new low since September 2003.
The contract settled down 96 cents, or 3.26 percent, the session before.
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