Oil prices tumble over 4 pct as recession fears mount

New York, U.S. | Xinhua | Oil prices fell sharply on Tuesday amid growing concerns over the global economic outlook.

The West Texas Intermediate for February delivery dropped 3.33 U.S. dollars, or 4.15 percent, to settle at 76.93 dollars a barrel on the New York Mercantile Exchange. Brent crude for March delivery lost 3.81 dollars, or 4.43 percent, to settle at 82.1 dollars a barrel on the London ICE Futures Exchange.

The slide came as traders worried about gloomy demand prospects as the global economy slows.

Kristalina Georgieva, managing director of the International Monetary Fund, warned on Sunday that 2023 will be “tougher” than last year, noting one third of the world economy could enter recession territory.

Also weighing on oil was a surge in the U.S. dollar. The dollar index, which measures the greenback against six major peers, jumped 0.95 percent to 104.5070 in late trading on Tuesday. Historically, the price of oil is inversely related to the price of the U.S. currency.