Oil prices fell sharply for a second day in a row today, mirroring the situation across world stock markets, as fears of a new global recession risks reducing demand for energy.
New York's main contract, West Texas Intermediate light sweet crude for delivery in September, dived $2.40 to $79.98 a barrel. Brent North Sea crude for October delivery dropped $1.15 to $105.84.
Analysts said that fear holds financial markets in a tight grip at the moment and considering the many challenges currently facing most regions of the world and the threat to the continued recovery this is not surprising.
US investment bank Morgan Stanley on yesterday warned that the US and Europe stood dangerously close to recession and that growth in the big emerging economies would be slower than expected.
The growth picture was also hurt by poor to outright gloomy US economic data on jobs, inflation, housing sales and regional manufacturing released yesterday.
