FX.co ★ Oil Extends Losses On Recession Worries

Oil prices fell on Tuesday to extend recent losses, as recession worries mounted and traders weighed a potential increase in OPEC supply.

Benchmark Brent crude futures dropped 0.9 percent to $94.25 a barrel, while WTI crude futures were down half a percent at $89.

A flurry of disappointing economic data in the U.S. and China on Monday raised worries about fuel demand.

The latest ZEW survey results showed today that economic sentiment continued to deteriorate in the euro area and in Germany.

Elsewhere, the U.K. labor market showed more signs of cooling, with real levels of wages falling at the fastest pace in two decades, official data showed.

On the supply side, Iran responded positively to a proposed nuclear deal without offering any details on the substance of the response, Iran's official IRNA news agency reported. The European Union said it's studying Iran's response.

Saudi Aramco, the world's largest crude producer, also indicated that it could potentially increase output.

Saudi Aramco plans to raise crude oil output to its maximum capacity of 12.3 million b/d by 2025 if requested by the Saudi Arabian government to meet the needs of global consumers.

American Petroleum Institute data on U.S. crude stockpiles are due later in the session.