Oil dives nearly $6 a barrel on demand fears, Iraq exports | Reuters

Oil dives nearly $6 a barrel on demand fears, Iraq exports | Reuters

Oil prices fell nearly $6 a barrel on Tuesday, the steepest decline in about a month, on fears that fuel demand could soften as global central banks hike rates to fight surging inflation, and as unrest in Iraq failed to dent the OPEC nation's crude exports.

Brent crude futures for October settled down $5.78, or 5.5%, at $99.31 a barrel after touching a session low of $97.55 a barrel.

The October contract expires on Wednesday and the more active November contract was at $97.84, down 4.9%.

U.S. West Texas Intermediate crude dropped by $5., or 5.5%, to $91.64.

Inflation is near double-digit territory in many of the world's biggest economies. This could prompt central banks to resort to more aggressive interest rate increases, which could slow economic growth and fuel demand. read more