Oil prices have dropped by more than 1% amid sliding global financial markets triggered by a deepening sell-off, continuing a recent trend.

Wall Street witnessed the biggest intraday falls ever, as panic engulfed global markets.

Brent crude futures dropped 71 cents, or 1.1%, trading at $66.91 per barrel, while US West Texas Intermediate (WTI) crude futures fell 69 cents, or 1.1%, trading at $63.46 a barrel, according to Reuters.

The price level touched by Brent futures is more than $4 below their highest level so far this year, which was reached last month.

Consultancy firm Trifecta Energy director Sukrit Vijayakar said: “The fall [in crude futures] is mainly attributable to a global sell-off in equities.

“The fall in crude futures is mainly attributable to a global sell-off in equities.”

“People ran to the US dollar as a safe haven currency. Therefore, the dollar strengthens. This makes commodities more expensive to buy, hence oil futures get sold off.”

A sharp rise in US bond yields led to speculations over rising inflation and potentially higher interest rates.

The Dow Jones Industrial Average suffered a 4.6% loss on Monday, representing its biggest fall in terms of percentage for almost six and a half years.

Additionally, traders suggested that the change in oil prices is being influenced by fundamental factors such as ample supply of crude.

Soaring US production has undermined output cuts by the OPEC and Russia to stabilise the market.

By late last month, the number of rigs drilling for oil in the US rose to 765, while production increased to more than ten million barrels per day (bpd).