Crude oil futures ended deeply in red on Tuesday as recession fears grow, sparking fears that an economic slowdown will cut demand for petroleum products after a private report showed business growth across the euro zone slowed further last month on inflationary pressures weighed as well on oil prices. Further, a strong dollar too contributed to the sharp drop in oil prices. The dollar index climbed to a near two-decade high of 106.79, gaining more than 1.5%, amid rising prospects of a series of sharp interest rate hikes by the Federal Reserve.
Benchmark crude oil futures for August delivery dropped $8.93 or 8.2 percent to settle at $99.50 a barrel on the New York Mercantile Exchange. Brent crude for September delivery fell $10.89 or 9.59 percent to settle at $102.61 (Provisional) a barrel on London's Intercontinental Exchange.