Oil prices declined more than $1 on Wednesday, reaching their lowest level since the Russian invasion of Ukraine, as concerns about a global economic recession and a decline in fuel demand were stoked by Covid-19 curbs in China, the world’s largest crude importer, and by expectations of further interest rate hikes.
By 04:20 GMT, Brent Crude Futures had lost $1.35, or 1.5%, to reach $91.48 per barrel after losing 3% the previous session. The contract’s $91.35 session low was its lowest value since February 18.
Futures for US West Texas Intermediate crude fell $1.55, or 1.8 percent, to $85.33. The benchmark dropped to $85.17 for the session low, the lowest level since January 26.
After the Organization of the Petroleum Exporting Countries (OPEC) and their allies, often known as OPEC+, resolved to reduce output by 100,000 barrels per day in October, oil prices sharply increased on Monday.
