Oil falls by over $3 on inflation woes, Iraq exports | Reuters

Oil falls by over $3 on inflation woes, Iraq exports | Reuters

Oil prices fell by more than $3 a barrel on Tuesday on fears that an inflation-induced weakening of global economies would soften fuel demand, and as Iraqi crude exports have been unaffected by clashes.

Brent crude futures for October settlement fell $3.81, or 3.63%, to $101.28 a barrel by 1156 GMT, after hitting a session low of $100.90 a barrel.

The October contract expires on Wednesday and the more active November contract was at $100.01 a barrel, down 2.84%.

U.S. West Texas Intermediate crude was at $94.12 a barrel, down $2.89, or 2.98%.

Inflation is near double-digit territory in many of the world's biggest economies, a level not seen in close to a half century. This could prompt central banks in the United States and Europe to resort to more aggressive interest rate hikes that could curtail economic growth and weigh on fuel demand. read more

"The economy will continue to remain slow with the Fed’s aggressive monetary policies. Investors are now waiting for the monthly employment data on Friday," said Kunal Sawhney, chief executive officer, Kalkine Group.