Asian markets have tumbled overnight, after oil wiped out most of the gains it made this week.
Last night West Texas Intermediate (WTI) crude dipped as low as $27.55 per barrel, while Brent crude fell to $28.28. Yesterday both rose above $30 for the first time since the weekend, before erasing those gains.
The news sent the Japanese Nikkei down 3.7 per cent to 16,416 points, while the Hang Seng, based in Hong Kong, fell 3.5 per cent to just under 19,000 points.
In China, the Shanghai Composite was one pre cent lower, just under 3,000 points, while the Shenzhen Composite was 0.74 per cent lower, at almost 1,900 points.
Analysts said the markets were also reacting to a weak forecast by the International Monetary Fund, which slashed its expectations for global growth this year to 3.4 per cent, 0.2 percentage points lower than its previous estimate.
"The frailty in the Chinese growth remain the core problem for investors and the spotlights are not moving away from it anytime soon," said Naeem Aslam, chief market analyst at Avatrade.
On Tuesday China posted Gross Domestic Product 6.9 per cent higher in 2015, its lowest rate of growth in 25 years.
The FTSE 100 was expected to follow Asian markets lower, although unemployment and wage growth data expected out later may increase optimism among British investors.