New York September 7 2022: Oil prices fell by more than $3 on Wednesday to their lowest since Russia invaded Ukraine on demand fears stoked by looming recession risks and downbeat Chinese trade data.
Brent crude futures were down $3.40, or 3.66%, at $89.43 a barrel by 1338 GMT, touching their lowest since Feb. 3, and falling below $90 a barrel for the first since since Feb. 8.
U.S. West Texas Intermediate crude fell by $3.42, or 3.94%, to $83.46, reaching its lowest since Jan. 24 as recession fears moved back into the spotlight.
“The spectre of a demand-sapping recession across the Western world is closer to becoming reality as soaring inflation and rising interest rates dent consumption,” said PVM analyst Stephen Brennock.
Credit rating agency Fitch on Tuesday said that the halting of the Nord Stream 1 pipeline has increased the likelihood of a recession in the euro zone.
The European Central Bank is widely expected to raise interest rates sharply when it meets on Thursday. A U.S. Federal Reserve meeting follows on Sept. 21.
