On Tuesday oil prices dropped by around $10 per barrel as fears of a global recession limiting demand overshadowed a Norwegian oil and gas worker strike that may exacerbate supply shortages and cut exports.
Brent crude was $10.65, or 9.4% lower at $102.85 per barrel. U.S. West Texas Intermediate crude dropped $9.36, or 8.6%, at $99.07 per barrel.
Oil futures dropped together with equities as investors were worried about the possibility of an economic slowdown as central banks globally take aggressive actions to fight inflation.
If there is a recession, and it reduces energy demand significantly, a bigger reduction in the oil price may be possible.
Safe-haven demand for Treasuries in the U.S. bolstered the dollar by around 1.5%, which in turn weighed on oil denominated by the dollar as it became more expensive for buyers with other currencies.
The euro dropped to a 20-year low as data indicated business growth across the eurozone was slowing further, and forward-looking indicators showed the area may slip into decline this quarter as the cost of living crisis keeps consumers jittery.
Supply worries are still around, initially pushing WTI and Brent higher in early trading, due to likely output disruption in Norway, where offshore workers have started striking.