Oil prices slump in global market

World oil prices spiralled lower Wednesday on fears that a potential recession will slash demand, with Brent crude sinking under $100 per barrel.

Europe’s benchmark crude contract, Brent North Sea, dropped 3.3 per cent to $99.39 per barrel in mid-afternoon deals, while US counterpart WTI oil also fell 3.3 per cent to stand at $96.12.

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Prices had already tumbled Tuesday on concern that a slowing global economy will dent demand for petroleum products, with WTI breaching the key $100 level.

Citi analysts have forecast that Brent could strike $65 later this year in the event of a prolonged worldwide economic downturn. (AFP)