The global crude oil benchmark, Brent crude, fell to $96.19 per barrel after losing $1.73 or 1.8 per cent, OduNews reports.
This is as the US West Texas Intermediate (WTI) crude futures shed $1.51 or 1.6 per cent to trade at $91.13 a barrel.
The fall in crude oil prices is a result of the fears that economic storm clouds could foreshadow a global recession and erode fuel demand.
Prices also fell amid comments from US Federal Reserve officials about rising interest rates and their effect on the economy.
Fed Vice Chair Lael Brainard said the economy is starting to feel more restrictive monetary policy, but the full brunt of the central bank’s interest rate hikes will not be apparent for months.
Brainard’s comments followed remarks by Chicago Fed President Charles Evans that there was a strong consensus at the US Fed to raise the target policy rate to around 4.5 per cent by March and hold it there.
Oil prices also struggled under a strengthening US Dollar, which rose for a fourth session. A stronger dollar makes crude more expensive for buyers who hold other currencies.
Data out of China also affected the market as services activity in the world’s largest importer contracted for the first time in four months during September as COVID-19 restrictions hit demand and business confidence.
The Prospect of tightening oil supplies by the Organisation of the Petroleum Exporting Countries and allies, including Russia, together known as OPEC+, however, limited declines in prices.
