International Energy Agency warns oil glut will last

Oil futures extended their decline yesterday, with US crude touching its lowest since 2003, as a global supply glut bumped up against bearish financial news that sparked deeper worries over demand.

US crude oil dropped more than 4% at one stage, falling to as low as $27.32 a barrel. It regained ground to trade down 92 cents at $27.54 later.

The contract settled down 96 cents, or 3.26 percent, in the previous session.