NEW YORK (MarketWatch) -- Worries over the health of the global economy sent crude-oil futures tumbling Monday, with light sweet crude trading a shade below $90 a barrel.
Crude for November delivery fell $4.13 to $89.76 a barrel in electronic trading on Globex.
Other energy futures also fell sharply.
Oil futures are "continuing their decline with pessimism still haunting global markets and investors still pulling money out of commodities," said Andrey Kryuchenkov, analyst at Sucden Research, in a note.
"Fears that global economic activity is slowing down have captivated markets in the past weeks and until equities start consolidating or until we see some positive economic data, volatility is likely to persist," he said.
Last week, crude futures ended with a weekly loss of more than 12%.
Traders have been worrying in recent months that a slowdown in global economic growth will lead to a sharp slowdown in demand for oil.
The unprecedented crisis for European banks deepened severely over the weekend, leading to new rescue packages such firms as Fortis (BE:000380118: news, chart, profile) and Hypo Real Estate (DE:802770: news, chart, profile) , as Germany joined the roster of countries to guarantee bank deposits. The bank troubles sent European stock markets sharply lower. Read more.
In foreign exchange, the euro plunged after a weekend meeting of European Union leaders failed to produce a consensus on how to deal with renewed banking-sector turmoil. The dollar index , which tracks the performance of the greenback against a basket of other major currencies, fell 0.3% to 81.04. See Currencies.
Also on Globex, November reformulated gasoline fell 9 cents, or 4%, to $2.14 a gallon and November heating oil dropped 11 cents, or 4%, to $2.55 a gallon.
November natural gas dropped 21 cents to $7.15 per million British thermal units.
Also on the commodity markets, gold futures soared more than 4% to trade at $868 an ounce on Globex, as investors sought a safe haven amid the global financial crisis.