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Oil Extends Its Losses as Growth Concerns Stoke Two-Day Decline

  • US crude benchmark settles below $100 a barrel for second day
  • Price plunges are part of a pattern of extreme volatility
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$85 Crude Is Citi's Base Case as Demand Falls: Morse
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Oil extended its drop for a second day as fears of a global slowdown outweighed continued supply disruptions and market tightness.

West Texas Intermediate settled below $100 after trading in a $7 range on Wednesday. The two-day decline comes as concerns over an economic recession, as well as months of dwindling liquidity, undermine the idea of oil being used as a hedge against inflation. Meanwhile, Citigroup Inc.’s Ed Morse said the outlook for oil demand will likely see further downward revisions amid higher fuel prices.