Brent oil closes under $100/barrel for first time since April
Aerial view of an oil refinery in Germany. /CFP

Aerial view of an oil refinery in Germany. /CFP

Brent oil futures closed Tuesday under $100 a barrel for the first time in three months as recession worries cloud the near-term outlook for crude demand. 

The contract for the international oil benchmark for September delivery tumbled 7.1 percent to $99.49 a barrel.

The U.S. benchmark, West Texas Intermediate, fell 7.9 percent to finish at $95.84 a barrel. 

The drop in Brent below the psychologically important $100 level came shortly after the euro currency fell to parity with the U.S. dollar for the first time in nearly 20 years as Russia cut off gas supplies to Europe, heightening fears of a recession in the eurozone. 

Despite worries about the weakening economic outlook, analysts have cautioned that global oil inventories remain low by historic standards, meaning the market could have a tough time meeting demand if there is a supply disruption.

(With input from AFP)

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