Brent fell as much as 7.6%, or $5.08 a barrel, to hit $61.71, its lowest point in more than 11 months.
International Brent crude oil futures LCOc1 were at $63.19 per barrel at 0239 GMT, up 66 cents, or 1.1 percent from their last close. The global benchmark fell as much as 5.1 percent to $63.36, the lowest since early March.
Tuesday's drop extended a slide that has been largely unimpeded since early October. Since then, WTI has fallen more than 30 per cent.
"For the time being it's more about risk", said Jim Ritterbusch, president of Ritterbusch and Associates.
"The WTI crude market will spend the first half of today's trade "testing" recent lows".
"This is a risk aversion trade", said Mark Connors, global head of portfolio and risk advisory at Credit Suisse.
"The list of reasons for the decline are pretty specific. too much supply and a risk of slowing demand growth", said James Mick, Energy Portfolio Manager with USA investment firm Tortoise.
This eased concerns about potential oil supply disruptions amid heightened US-Saudi tensions.
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Brent has fallen by more than 25 per cent since reaching a 4-year high of $86.74 on October 3, reflecting concern about forecasts of slowing demand in 2019 and record supply from Saudi Arabia, Russia and the United States. "It really is a too-big-to-fail relationship", said Joe McMonigle, senior energy policy analyst at Hedgeye Risk Management in Washington. That runs counter to a Bloomberg survey of analysts that predicted inventories rose for a ninth straight week.
The number of long positions in Brent Crude slumped to their lowest in almost three years in the week to November 13, but the long positions in WTI Crude slightly edged up by less than 1 percent, snapping a six-week-long streak of weekly drops in longs.
A report from the industry-funded American Petroleum Institute offered a bullish note for oil investors, finding that U.S. crude stockpiles fell 1.55 million barrels last week, according to people familiar with the data.
USA crude production has soared nearly 25 percent this year, to a record 11.7 million barrels per day (bpd).
With output surging and the demand outlook deteriorating, the Organization of the Petroleum Exporting Countries (OPEC) is pushing for a supply cut of between 1 million and 1.4 million bpd to prevent a repeat of the 2014 glut.
Russia's energy minister Alexaner Novak has reportedly remarked that the oil market alliance will monitor supply and demand in the coming weeks before deciding on production levels.
The notion in some quarters that it's virtually impossible to predict with any certainty where crude will go next was reinforced by Fatih Birol, executive director of the International Energy Agency, who on Tuesday said "We are entering an unprecedented period of uncertainty in oil markets" due to geopolitical instability and a fragile global economy.