Oil prices fell yesterday as markets worry that aggressive interest rate hikes to stem the inflation will spur an economic downturn, further curbing the oil demand.
International benchmark Brent crude was trading at USD99.34 per barrel at 9.10 a.m. local time (0610GMT) for a 0.15 percent decrease after the previous session closed at USD99.49 a barrel.
American benchmark West Texas Intermediate (WTI) was at USD95.78 per barrel at the same time on Wednesday for a 0.06% loss, as the previous session closed at USD95.84 a barrel.
Oil prices continued to fall as central banks’ move to aggressively increase interest rates to combat the inflation raised fears of a stronger global recession.
Fears of lower global oil demand put negative pressure on prices as central banks worldwide increase interest rates to tame the inflation and a new wave of COVID-19 pandemic forces Chinese cities to take drastic action.
Market players are keeping a tight eye on US President Joe Biden’s travel to the Middle East, where he is anticipated to urge Saudi Arabia and other Gulf producers to increase their oil supply to support price stability.*PNA