Oil posted its worst trading day in almost three months as recession fears gripped markets, outweighing a fundamentally tight supply market.
West Texas Intermediate crude futures settled below $100 on Tuesday after falling more than 8%, the most since March 9. Risk-off sentiment spread throughout markets on escalating concerns that a global economic slowdown will ultimately hobble demand. Oil prices have been prone to violent swings as traders fled to the exits after Russia invaded Ukraine, drying up liquidity. The latest plunge came as equities slid and the dollar surged. Citigroup Inc. said that crude could fall to $65 this year in the event of a recession.