Oil futures settle almost 4% lower

Oil futures on Tuesday lost almost 4% for the session to settle at their lowest level since late June. The “sticky” core U.S. inflation data lessens the chance of a first quarter Federal Reserve interest-rate cut, which “typically brings the prospects of a Fed-induced recession back into play,” said Stephen Innes, managing partner at SPI Asset Management. “At the same time, China’s deflationary funk continues to be a drag on demand.” January West Texas Intermediate crude
CLF24,
-3.60%
fell $2.71, or 3.8%, to settle at $68.61 a barrel on the New York Mercantile Exchange. That was the lowest front-month contract finish since June 27, according to Dow Jones Market Data.