Oil tumbles as recession fears spur worries of demand destruction | Reuters
Oil plummeted nearly $12 a barrel on Tuesday in the biggest daily drop since March and the decline spread to other energy sectors amid worries of a global recession.
Benchmark Brent crude was down $11.88, or 10.4%, at $101.83 a barrel by 1:53 p.m. EDT (1645 GMT). U.S. West Texas Intermediate (WTI) crude settled at $99.50 a barrel, falling 8.2%, or $8.93 a barrel. There was no WTI settlement on Monday because of a U.S. holiday.
Both benchmarks logged their biggest daily percentage decline since March 9 and hit share prices of major oil and gas companies. Prices hit the lowest since late-April.
"We're getting creamed and the only way you can explain that away is fear of recession," said Robert Yawger, director of energy futures at Mizuho. "You're feeling the pressure."
Oil futures sank along with natural gas, gasoline and equities, which often serve as demand indicator for crude.
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