Reuters reported that Brent crude fell below USD 112 per barrel as fears of another US recession slowing fuel demand overshadowed supply concerns over a major shutdown of offshore oil production forced by Tropical Storm Lee.

US employment growth ground to a halt in August, reviving recession fears and piling pressure on both President Barack Obama and the Federal Reserve to provide more stimulus to aid the frail economy.

Front month Brent fell 88 cents to USD 111.45 per barrel by 0624 GMT. Brent plunged almost USD 2 per barrel on the disappointing jobs data released in the United States. US crude was down a dollar to USD 85.45 per barrel after settling USD 2.48 lower at USD 86.45. Friday's losses wiped out part of US crude's 4.1% gain in the week through Thursday.

Mr Chen Xin Yi a commodities analyst at Barclays Capital in Singapore said that "The macro situation is leading to fears of a double-dip recession. And there has been a recent trend of selling into strength when the market hits a soft patch. That said, the fundamentals in the oil market remain strong and any upside surprise in macro data releases from what is evidently now a low base of expectations should spur further gains."

(Sourced from Reuters)