The global oil benchmark, Brent Crude, plunged 0.37% to $99.66 a barrel, while West Texas Intermediate (WTI) crude fell 0.01 percent to $93.88 a barrel.
The slide came after Brent futures slumped on Monday to a session low of $99.09 a barrel, their lowest since July 15. The US crude benchmark dropped to as low as $92.42 a barrel, its weakest since July 14.
“Crude prices tumbled after a wealth of factory activity data suggested the world is headed towards a giant global economic contraction, and on expectations for more oil output following a very good earnings season for oil companies,” said Edward Moya, senior market analyst from OANDA, in a note.
The price drops also come as market participants await the outcome of a meeting on Wednesday between the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, together known as OPEC+, to decide on September output.
Analysts at Haitong Futures said: “The upward momentum of oil prices has been gradually fading … Once the supply and demand situation shows any sign of further deterioration, oil is likely to lead the decline among commodities.”
In a Reuters survey, two of eight OPEC+ sources said there would be a modest increase for September — others said output is likely to remain unchanged.
The organisation had approved the plans to add 648,000 barrels of oil per day for August.
