Oil prices fell on Wednesday as markets worry that aggressive interest rate hikes to stem inflation will spur an economic downturn, further curbing oil demand.
International benchmark Brent crude was trading at $99.34 per barrel at 9.10 a.m. local time (0610 GMT) for a 0.15% decrease after the previous session closed at $99.49 a barrel.
American benchmark West Texas Intermediate (WTI) was at $95.78 per barrel at the same time on Wednesday for a 0.06% loss, after the previous session closed at $95.84 a barrel.
Oil prices continued to fall as central banks’ move to aggressively increase interest rates to combat inflation raised fears of a stronger global recession.
Fears of lower global oil demand put negative pressure on prices as world’s central banks increase interest rates to tame 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 in order to support price stability.
Source: Anadolu Agency