London - Oil prices slumped on Tuesday, with New York crude hitting a three-month low as poor United States company results offset tight supply worries, traders said.
Brent North Sea crude for delivery in December slid $1.46 to $107.98 a barrel in late London deals.
New York's main contract, light sweet crude for December, tumbled $2.36 to $86.29 a barrel after briefly striking a three-month low at $85.69.
“Global economic concerns are at the forefront of investors' minds, which is why risk assets, including crude oil, are falling across the board,” said Fawad Razaqzada, analyst at traders GFT Markets.
“The sudden aversion of risk has been triggered by a raft of poor US corporate results and outlook, as well as the recent sluggish economic reports from China and the eurozone.
“Indeed, expectations for a rebound in global manufacturing activity have fallen by a notch or two ahead of Wednesday's PMI reports from China, Germany and several other eurozone countries,” he added.
Oil prices had fallen on Monday in the wake of sharp pre-weekend losses, also as investors reacted to Japan's worst September trade figures in more than 30 years.
All eyes were also on violence in the oil-rich Middle East region, as hopes of a truce in war-torn Syria during this week's Muslim Eid-ul-Adha holiday remained slim on Tuesday as clashes showed no signs of easing and the death toll mounted.
Elsewhere, Anglo-Dutch oil group Shell on Tuesday said it may not meet contractual obligations on certain exports from Nigeria because of theft and damage to key pipelines in the country's oil region. - Sapa-AFP