Oil prices careered lower today, as anxiety over the pace of China's economic slowdown dented the outlook for demand.
Brent crude, the global benchmark, fell 2.7 per cent to $32.63 per barrel today, while West Texas Intermediate crude, the US benchmark, slumped 2.1 per cent at $32.47.
It comes after oil prices shed around 10 per cent last week, amid stock market turbulence sparked by a slide in the yuan and two emergency suspensions in Chinese stock market trading.
"China macro trends remain in the driving seat for commodities," Singapore Exchange said today.
"With a slowing domestic economy, mounting deflationary pressures, rising capital outflows, growing credit risks, a continued nationwide anti-corruption drive and rising US interest rates, there is perhaps plenty of scope for volatility to stage a return."
Oil prices have fallen around 70 per cent since mid-2014 due to the widening gap between supply and demand. The slowdown in China, where growth has dropped to its lowest rate in a generation, has exacerbated this.