Investing.com - Oil prices sold off in North American trade on Tuesday, adding to overnight losses as investors fled anything considered a risky asset amid concerns over the global economy.
On the ICE Futures Exchange in London, Brent oil for September delivery fell by as much as 3% to a session low of $48.65 a barrel, the weakest since June 29. It last stood at $48.70 by 12:35GMT, or 8:35AM ET, down $1.40, or 2.85%.
A day earlier, London-traded Brent futures lost 25 cents, or 0.5%, as economic concerns took center stage with many analysts saying oil demand will stall later this year.
Elsewhere, crude oil for August delivery on the New York Mercantile Exchange dropped $1.46, or 2.98%, to trade at $47.53 a barrel, after sliding to an intraday low of $47.43, a level not seen since June 28.
Signs of a potential recovery in U.S. drilling activity weighed. According to oilfield services provider Baker Hughes, the number of rigs drilling for oil in the U.S. rose by 11 last week to 341, marking the fourth increase in five weeks.
The renewed gain in U.S. drilling activity fueled speculation that domestic production could be on the verge of rebounding in the weeks ahead, underlining worries over a supply glut.