Oil dips again on Wednesday, API report ahead

(Correction – The article has been edited to mention the news source as WBP Online)

With rising worries over the global supply glut, oil prices continued their downward fall on Wednesday, with both benchmarks trading below the $29 level. Brent March futures dropped 1.84% to $28.23 per barrel, while futures for WTI's March contract plummeted 2.67% to trade at $28.78 per barrel, WBP Online reported.

In a recent report, the International Energy Agency (IEA) predicted further fall in oil prices due to oversupply this year. Analysts expect current crude surplus to last for the whole year, with some speculating that the supply could ease in the second half of 2017.

It is important to note in this context that Iran is seen as a major threat to oil prices as economic sanctions against the country were lifted, that suggests that Tehran will be able to enter the market completely.

The fresh weekly US stockpile data by the American Petroleum Institute are scheduled for release later in the day, while the official government data are to be published on Thursday. Following a gain of 234,000 a week before, more than 3 million barrel rise is expected in crude inventories in the US for the week to January 15.