Shafaq News / Oil prices slid about 2% on Thursday as traders worried about the fuel demand outlook due to a stronger dollar and further interest rate hikes by global central banks.
After rising for three straight days, Brent futures fell $1.49, or 1.8%, to settle at $81.21 a barrel, while U.S. West Texas Intermediate (WTI) crude fell $1.17, or 1.5%, to settle at $76.11.
"Crude prices edged lower as ... global recession risks increased after a wave of central banks delivered another strong round of tightening. Oil’s recent rally (ran) out of steam as risk aversion runs wild," said Edward Moya, senior market analyst at data and analytics firm OANDA.
Federal Reserve Chair Jerome Powell said on Wednesday the U.S. central bank will raise interest rates further next year, even as the economy slips toward a possible recession. On Thursday, the Bank of England and the European Central Bank raised interest rates to fight inflation.
U.S. stock indexes fell sharply as the Federal Reserve's guidance for protracted policy tightening quelled hopes the rate-hike cycle would end anytime soon.
(Reuters)