West TX Oil Below $47 on Crude Oversupply Woes

U.S. crude futures fell towards $47 a barrel, close to a four-month low, in early Asian trade on Tuesday after a stock market sell-off rattled investors, adding to concerns of an oil supply glut, although a weaker dollar put a floor under prices.

Stocks in New York and Europe fell on Monday after Chinese stocks plunged more than 8 percent in Asian trading, the biggest one-day drop in eight years and heightening worries about the health of the world’s biggest energy consumer.

U.S. crude for September delivery dropped 30 cents to $47.09 a barrel as of 0020 GMT, after ending the previous session down 75 cents. It fell below $47 post-settlement, the lowest since March 24.