Oil Falls Over 2% On Global Recession And China COVID-19 Fears

Oil slid more than 2 per cent on Tuesday, extending losses of nearly 2 per cent in the previous session.

Oil slid more than 2 per cent on Tuesday, extending losses of nearly 2 per cent in the previous session, as recession fears and a flare-up in COVID-19 cases in China raised concern over global demand.

World Bank President David Malpass and International Monetary Fund Managing Director Kristalina Georgieva warned on Monday of a growing risk of global recession and said that inflation remains a continuing problem.

Brent crude fell $2.30, or 2.4 per cent, to $93.89 a barrel. US West Texas Intermediate crude dropped $2.12, or 2.3 per cent, to $89.01.

"There is growing pessimism in the markets now," said Craig Erlam of brokerage OANDA.