Oil prices slid by about 2 percent to a 12-week low in volatile trade on Wednesday, extending the prior session's heavy losses as investors grew more worried energy demand would take a hit in a potential global recession.

Brent futures for September delivery fell by $2.08, or 2.0 percent, to settle at $100.69 a barrel. U.S. West Texas Intermediate (WTI) crude fell by 97 cents, or 1.0 percent, to settle at $98.53. Both benchmarks closed at their lowest since April 11, in technically oversold territory for a second straight day.

On Tuesday, WTI slid by 8 percent while Brent tumbled by 9 percent, a $10.73 drop that was the third biggest for the contract since it started trading in 1988. Its biggest drop was $16.84 in March.

Analysts at investment banks Goldman Sachs and UBS said oil prices dropped due to recession fears.

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

Kristalina Georgieva, the managing director of the International Monetary Fund, said on Wednesday that the outlook for the global economy had "darkened significantly" since April and she could not rule out a possible global recession next year given the elevated risks.

(With input from agencies)