Glut in crude oil sees 12-year low of $32

Oil lurched to new 12-year lows before paring some losses yesterday, with some traders betting a rout triggered by fears over China demand and swelling US stockpiles had run its course, for now.

Global benchmark Brent crude fell as much as 6% to nearly $32 (€29) a barrel, its lowest level since at least April 2004, as another free-fall in the Chinese stock market rattled investors already concerned by the world glut in crude.

But in New York trade, Brent pared those losses as some traders took profits after prices slid nearly 14% in four days.