OIL fell more than 4 percent yesterday on rising concern that turmoil in global financial markets will further hit fuel demand and send investors into safer havens.
Reports that United States oil infrastructure had escaped major damage from Hurricane Ike also weighed on markets, with crude falling more than US$5 on Monday after Lehman Brothers sought bankruptcy protection.
US crude traded down US$3.96 to US$91.75 a barrel by 1.55pm London time, just off a seven-month low of US$90.55 a barrel earlier. Brent crude fell US$4.30 to US$89.94 a barrel.
"If the economic turmoil continues, demand will continue to drop," said Jonathan Kornafel, Asia director at US-based options trader Hudson Capital Energy. "It's a bit of panic in the markets."