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.
