Oil prices tumbled as much as 5% this evening, with US crude falling to its lowest level since February as mounting fears of a stalled US economy set off a global race from riskier assets.
US crude turned negative for the year while other commodities were also hammered as investors sought to trim holdings of risky assets. The dollar also rose after Japan intervened to curb the yen's rise. This also affects demand for dollar-denominated oil.
In London, Brent crude fell $4 to $109.23 a barrel, while US crude slid $4.05 to $87.88.
Oil prices have slid further after sharply dropping on Wednesday after US inventory data showed a rise in petrol stocks and a year-on-year decline in petrol demand. That added to evidence that expensive fuel and a weak economy have reduced consumption in the world's biggest oil user.
