Oil extended declines after a deepening slide in equity and debt markets undermined the outlook for energy demand against the backdrop of expanding U.S. crude stockpiles.
Futures in New York slid as much as 1.3 percent, extending the 2.5 percent decline in the previous two sessions. The Dow Jones Industrial Average on Monday fell 4.6 percent, the most in more than six years, as inflation fears and the prospect of higher rates rattled financial markets. U.S. crude inventories probably rose by 3 million barrels last week, according to a Bloomberg survey before government data due Wednesday.
WTI for March delivery dropped as much as 80 cents to $63.35 a barrel on the New York Mercantile Exchange and traded at $63.61 as of 9:03 a.m. in Tokyo. The contract fell 2 percent on Monday to $64.15. Total volume traded was about 24 percent below the 100-day average.
Brent for April settlement lost 96 cents, or 1.4 percent, to close at $67.62 on the London-based ICE Futures Europe exchange on Monday. The global benchmark crude ended the session at a premium of $3.79 to April WTI.