LONDON: Brent crude sank below $100 a barrel for the first time in nine months on Tuesday in a broad commodities rout after recent weak data from China and the United States spurred worries about oil demand.
A dismal global economic outlook dragged gold down to a more than two-year low and shaved over $2 off oil prices earlier in the session. While commodities recouped some of the losses shaky investor sentiment kept a lid on prices.
A bombing at the finish line of the Boston Marathon added to the market volatility.
Brent crude for June delivery dropped $1.03 to $99.60 per barrel by 0918 GMT, after falling to as low as $98.00 - the lowest since July 2012.
US crude for May delivery fell 77 cents to $87.94 a barrel, after hitting a low of $86.06 - its weakest since December 2012. The prices were set for their longest losing streak also since December.
Oil prices slipped about 3 percent on Monday after data showed economic growth in the world's second largest oil consumer China unexpectedly slowed in the first three months of 2013.
This rattled oil markets already spooked by forecasts for lower global oil demand growth.
"Somewhat disappointing Chinese GDP data yesterday might have contributed to the bearish sentiment in the oil futures markets," analysts at JBC Energy said.
"However... Monday's sell-off across virtually all commodities and equities markets and the extent of losses in some markets is difficult to justify on fundamental grounds solely, with herd behaviour and momentum trading contributing to the sell-off in yesterday's session," JBC Energy said.
Ian Taylor, head of the world's biggest oil trader Vitol, said on Tuesday that oil prices were unlikely to fall much further for a while.
"I think it has done what it is going to do for a while," the Vitol group president and chief executive told Reuters.
Analysts supported Taylor's view.
"A continued price slide is unlikely, for this would prompt OPEC to reduce supply in a bid to shore up the price. At an oil price of below $100 per barrel, some OPEC producers find it difficult to finance their national expenditure through oil revenues," analysts at Commerzbank said.
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