NYMEX April crude futures settled $2.02 lower at $104.70/barrel Tuesday, erasing gains from the past two weeks as concerns over global economic stability and growth mounted.
April heating oil settled $2.92 lower at $3.1882/gal, and April RBOB settled 2.81 cents lower at $3.2299/gal.
ICE April Brent settled $1.82 lower at $121.98/b.
Macroeconomic concerns dominated the front end of the oil market with pressure seen from a surge in the US dollar, while a decline in eurozone fourth-quarter GDP coupled with disappointing Chinese economic data from a day earlier to dent risk appetite.
Also, wariness over a Greek debt swap decision -- as private investors in Greek bonds need to decide by Thursday if they will accept the terms of the haircut -- weighed on the oil complex, said Gene McGillian, analyst at Tradition Energy.
"If fewer than 67% of bondholders take part, there could be a disorderly Greek default," he said.
News Tuesday that global powers offered to resume stalled talks with Iran over its contested nuclear drive accelerated the declines in oil, said analysts.
"On behalf of China, France, Germany, the Russian Federation, the United Kingdom, the United States of America, I have offered to resume talks with Iran on the nuclear issue," said EU foreign policy chief Catherine Ashton, according to AFP.
US equities also slumped on concerns over Greek debt, with the Dow Jones Industrial Average down more than 200 points by the NYMEX settle. The S&P 500 Index was nearly 23 points lower in US afternoon trade.
Michael Guido, director of hedge fund sales at Macquarie, said concerns of potential builds in US oil stock levels in weekly reports -- due out late Tuesday and early Wednesday -- also put downward pressure on oil futures.
"Along with this, the net long position is now at heights last seen in May of 2011, while at the same time technical formations are beginning to break lower," he said.
The US Dollar Index on ICE was up 51.4 points, while the euro shed about 1 cent to $1.3116 by the NYMEX settle.
