Oil slides more than $4 on inflation and Iraq exports | Reuters

Oil slides more than $4 on inflation and Iraq exports | Reuters

Oil prices fell about $4 a barrel on Tuesday on fears that an inflation-induced weakening of global economies would soften fuel demand and as unrest in Iraq has not put a dent in the OPEC nation's crude exports.

Brent crude futures for October settlement were down $4.43, or 4.2%, at $100.62 a barrel by 11:00 a.m. ET (1500 GMT) after touching a session low of $99.66 a barrel.

The October contract expires on Wednesday and the more active November contract was at $99.19, down 3.6%.

U.S. West Texas Intermediate crude dropped by $4.00, or 4.1%, to $93.01.

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

"Investors are now waiting for the monthly employment data on Friday" said Kunal Sawhney, chief executive of equity researcher Kalkine Group.