Brent prices slid for a fourth consecutive day, hammered by fears of a slowdown in the global economy with European data due on Tuesday expected to show the region slipping back into a second recession in just three years.
China's decision to loosen monetary policy over the weekend also fed fears that the global economy is suffering as the crisis worsens, causing investors to flee from riskier assets and sending down copper, gold and the euro.
Brent crude slipped 49 cents to $111.08 a barrel by 0238 GMT after sliding to $110.04 on Monday, its lowest intraday price since Jan. 25.
U.S. crude dropped 54 cents to $94.24 a barrel, after falling to $93.65 on Monday, the weakest intraday price since Dec. 19.
"The risk-off turn in the market over the last week is due to a re-evaluation of global growth, particularly in China and Europe, which has been weighing on the market," said Natalie Robertson, an analyst at ANZ.
"With the U.S. dollar showing strength, it's weighing on the commodity markets with investors moving into traditional safe-haven assets, so it's not looking good for oil."
The euro fell to a four-month low against the dollar on Tuesday, adding to the strength of the dollar index. A stronger U.S. currency can pressure dollar-denominated commodities by making them more expensive for consumers using other currencies.
Strong production in Germany could not make up for a slump across the rest of the euro zone in March with declining output at factories falling and signalling an oncoming recession may not be as mild as policymakers hope.
Greece's president will ask politicians on Tuesday to stand aside and let a government of technocrats steer the nation away from bankruptcy, but leftists have already rejected the proposal and look set to force a new election they reckon they can win.
China's Commerce Ministry said on Tuesday the country's foreign direct investment inflows dropped 2.4 percent in the first four months of this year from last year, the longest period of declining inflows since the depths of the global financial crisis.
U.S. CRUDE OIL STOCKS
Further adding to the bearish tone, U.S. crude inventories were expected to have risen for an eighth straight time last week, a Reuters analyst survey on Monday showed. Distillate stocks were seen unchanged and gasoline stocks slightly higher.
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