Oil prices slump again, hit by demand concerns

Monitoring Desk

SINGAPORE: Oil prices extended their slide, led lower by worries that the global economy would slow further with renewed restrictions to curb COVID-19 in China.

Brent crude futures for October due to expire on Wednesday, settled at $96.49, down $2.82 a barrel, or 2.8%. The more active November contract lost $2.20 to $95.64 a barrel. U.S. West Texas Intermediate (WTI) crude futures ended down $2.09, or 2.3%, at $89.55 a barrel.

Investors became cautious due to rapid increase in interest rates in various countries, report said.

Due to the increase in interest rates in various countries, fears of a decrease in economic growth and a decrease in fuel demand have arisen, the report said.

Both OPEC and the United States saw production hit its highest levels since the early days of the coronavirus pandemic, with OPEC’s output hitting 29.6 million barrels per day (bpd) in the most recent month, according to a Reuters survey, while U.S. output rose to 11.82 million bpd in June. Both are at their highest levels since April 2020.

Crude oil is falling on fears of restrictions imposed in China due to the risk of COVID-19 outbreak again, reports

In the month of August, US crude oil was 9.20% cheaper and closed at 89.55 dollars per barrel.