Oil prices falls 4%, concerning economic slowdown and dent fuel prices

On Monday, Oil Prices have fallen in volatile trading, ending three days of gains, on feared aggressive U.S. interest rate hikes might lead to a global economic slowdown and dent fuel demand.

Brent crude futures for October settlement fell $3.99, or 4.1%, to $92.73 a barrel by 1411 GMT. U.S. West Texas Intermediate (WTI) crude for September delivery – due to expire on Monday – was down $3.77, or 4.1%, at $87. The more active October contract was down $3.73 cents, or 4.1%, at $86.71, Reuters reports.

Craig Erlam, senior market analyst at OANDA has said that the Choppy trade continues.

Craig further said that there remain many factors influencing the oil price currently from a tight market to a diminishing growth outlook and a potential Iran nuclear deal.

He believes that they could see WTI remain choppy around $90 and Brent hover above $92 for a little while longer yet.

Pressuring prices were concerns over slowing fuel demand in China, the world’s largest oil importer, partly due to the power crunch in the southwest.

On Monday, Beijing cut down its benchmark lending rate as part of measures to revive an economy shuffled by a property crisis and a resurgence of COVID-19 cases.