Brent Crude falls below $100 per barrel

Global benchmark Brent crude fell below $100 a barrel on Tuesday due to a stronger dollar, demand-sapping COVID-19 curbs in top crude importer China and fears of a global economic slowdown.

Brent crude futures were down by $7.62, or 7.1%, at $99.48 a barrel by 11:04 a.m. ET (1504 GMT). U.S. West Texas Intermediate crude was down $7.69, or 7.3%, at $96.42.

The dollar index, which tracks the unit against a basket of six counterparts, earlier climbed to 108.56, its highest since October 2002. A stronger greenback usually weighs on oil prices as it makes the dollar-priced commodity more expensive for holders of other currencies.

Investors have been dumping petroleum-related derivatives at one of the fastest rates of the pandemic era as recession fears intensified.

Hedge funds and other money managers sold the equivalent of 110 million barrels in the six most important petroleum-related futures and options contracts in the week to July 5.

Fears of an economic downturn also pushed down the S&P 500 and the Nasdaq.

Renewed COVID-19 mobility curbs in China weighed on prices as well. Multiple Chinese cities are adopting fresh restrictions, from business shutdowns to broader lockdowns, in an effort to rein in new infections from the highly infectious BA.5.2.1 subvariant of the virus.

Reuters/Hauwa Abu