Oil drops 3 percent on oversupply worries

NEW YORK (Reuters) - Oil plunged Thursday, with U.S. crude dropping more than 3 percent as the market grappled with oversupply fears as increased U.S. sanctions on Iran had more incremental impact than expected and U.S. crude oil inventories rose sharply.U.S. crude was down $2.24, or 3.5 percent at $61.35 per barrel by 11:34 a.m. EDT (1534 GMT), heading for its biggest weekly fall since February.Brent crude futures fell $1.92, or 2.7 percent to $70.26. The U.S. sanctions on Iran intensified as..