Oil falls to lowest since 2003 as yuan drop shows China turmoil

[HONG KONG] Oil plunged to a 12-year low in New York on speculation slower economic growth in China will curb fuel demand, worsening a worldwide oversupply.

West Texas Intermediate oil for February delivery fell as much as $1.87, or 5.5 per cent, to $32.10 a barrel, the lowest in intraday trade since December 2003. China's central bank reduced the onshore yuan's fixing to the lowest since March 2011, triggering a selloff that led to the closure of Chinese stock exchanges.

BLOOMBERG