Oil fell a second day, tracking a plunge across wider equity markets and other risk assets.
West Texas Intermediate dropped below $66 a barrel after sliding 1.5% on Monday, with Brent crude closing near $69.
Investors retreated from every type of risk on Monday with economic fear racing across markets as US President Donald Trump presses on with tariff measures and geopolitical shakeups.
Oil has fallen almost a fifth from a high in mid-January as Trump's chaotic rollout of tariff hikes and push to slash federal spending darken the economic outlook in the biggest producer and consumer of crude.
Other bearish factors include OPEC+ plans to add supply and weakening demand in China, the biggest importer, where Beijing told refiners to pivot away from making mainstay fuels like diesel and gasoline.
Monday's flight to safety also saw the US dollar snap a five-day losing streak, making commodities priced in the currency less attractive for many buyers.
WTI for April delivery fell 0.5% to $65.69 a barrel at 7:25 a.m. in Singapore.
Brent for May settlement closed 1.5% lower at $69.28 a barrel.
Source: Bloomberg
