Oil drops as recession concerns raise demand fears

Oil prices dipped on Tuesday as concerns about a possible global recession which may cause demand decline as well as supply disruption fears, highlighted by an expected production cut in Norway.

Brent crude decreased $0.6, or 0.5% to trade at $112.89 a barrel by 0638GMT, and U.S. West Texas Intermediate (WTI) crude fell $0.5, or 0.4%, to $108.78 a barrel.

Investors are becoming more concerned as the latest surge in gas and fuel prices adds to worries about recession, according to Reuters.

Supply concerns still linger, initially lifting WTI and Brent earlier in the session, amid worries about potential output disruption in Norway, where offshore workers began a strike.

The strike is expected to reduce oil and gas output by 89,000 barrels of oil equivalent per day (boepd), of which gas output makes up 27,500 boepd, Norwegian producer Equinor (EQNR.OL) has said.