Crude oil is getting slammed

Crude oil just keeps falling.

On Wednesday afternoon in New York, West Texas Intermediate crude oil fell more than 3% to as low as $US49.42 a barrel.

After falling below $US50 for the first time in months on Monday, crude oil slipped below that mark again this morning to trade at the lowest levels in three months.

In the last 24 hours, we got more evidence that the oil market remains oversupplied. On Tuesday, data from the American Petroleum Institute showed an inventory build of 2.3 million barrels last week, exceeding analyst estimates of 1.9 million.

And this morning, data from the Energy Information Administration showed a build in stockpiles by 2.5 million barrels last week, following two weeks of declines.

In recent weeks, news of the Iran nuclear deal that could unlock fresh exports, with relentless supply from other OPEC members including Saudi Arabia and Iraq, has put pressure on oil prices.

Here’s a chart showing the slide in crude oil on Wednesday:

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