Oil prices fell 5 per cent today, after a 10 per cent crash yesterday, as fears about global economic recovery pushed investors to further unwind commodities positions.
The big drop yesterday has scared the bulls, so now only bears are left," said Thorbjoern Bak Jensen, an analyst at Global Risk Management.
"The instinct is to liquidate. Even if you are a bull, you need to have deep pockets to ride this out," said one Singapore-based trader.
Brent crude shed just over $5, recovering to trade at $107.16, $3.64 down.
Brent settled more than $10 lower yesterday at $110.80 a barrel, the second biggest drop on record. At one point it gave up $12, its biggest fall ever.
US crude futures were $3.62 lower at $96.20 a barrel, up from as low as $95.25 a barrel earlier in the session.
Yesterday's fall was part a global dive over all commodities, driven by factors including a stronger dollar and weak economic data from Europe and the United States.
Reuters