Oil dips $2 on economic uncertainty

Oil dropped by $2 a barrel on Tuesday after two sessions of gains as jitters about the global economic outlook and a firmer dollar countered optimism about demand in China and expectations of a drop in US crude inventories. Brent crude fell by $1.93, or 2.4 per cent, to $80.80 a barrel by 11:30 a.m. ET (1530 GMT). US West Texas Intermediate crude dropped $1.73 to $77.02. On Monday, both contracts rose by more than 1pc. A survey on showed US consumer confidence fell to a nine-month low in April, feeding worries about a recession the day after regional lender First Republic reported a more than $100 billion flight in deposits, stoking fears of a potential banking crisis. The dollar rose on deepening worries about corporate earnings and the global economy. A stronger dollar pressures oil demand by making the commodity more expensive for buyers holding other currencies.