Oil prices fell nearly 4% this evening, touching a one-month low as the US Federal Reserve's weak economic outlook and disappointing Chinese data stirred fears of a global recession and battered markets.
Both Brent and US crude oil dropped, extending losses after the Fed's statement last night that the world's top economy faced significant downside risks.
Data showing private sector business activity in Europe and China declined sharply this month added to worries, driving world stock markets down as much as 4% and pummelling commodities as investors headed into safer havens such as the dollar.
Brent crude traded down $4.10 to $106.26 a barrel, after dropping earlier to $105.30, the lowest level since August 22. US crude plunged $4.57 a barrel to $81.35. It earlier touched $80.25, the lowest price since August 19.
