LONDON – Jan. 15, 2016 – Oil prices tumbled below $30 a barrel on Friday, with U.S. crude dropping around 5% as continued turmoil in Chinese markets and concerns over Iranian supplies adding to the global glut took their toll on the market Wall Street Journal reported.
Oil has shed about a fifth of its value since the beginning of this year on growing fears about the health of the Chinese economy, the world’s second-biggest oil-consumer.
Brent crude for March delivery, the global oil benchmark, fell 3.6% to $29.76 a barrel on London’s ICE Futures exchange. On the New York Mercantile Exchange, West Texas Intermediate futures for February were trading down 5% at $29.64 a barrel.
China consumes about 12% of world’s crude, second only to the U.S. A string of weak manufacturing data in recent months has fueled fears that an economic slowdown in the Asian giant will affect its appetite for crude.
On Iran added supply of oil to the market after the lifting of sanctions, analysts say this surge of Iranian oil exports would be added to the already oversupplied global market. Iranian officials have said the country is looking to add about 500,000 barrels within weeks of the sanctions relief.

“We suspect there is some further downside to prices,” said Daniel Hynes, analyst with ANZ Bank.