Crude oil prices fell on Wednesday, pushing the most active crude futures contract to their lowest settlement in nearly eight months.
Despite Russia's threats to shut off supply to the countries willing to participate in the G7's oil price cap scheme, oil prices fell on concerns about outlook for energy demand amid rising fears of a global recession.
West Texas Intermediate Crude oil futures for October ended lower by $4.94 or about 5.7% at $81.94 a barrel, the lowest settlement since January 11.
Brent crude futures were down $4.94 or 5.31% at $87.89 a barrel a little while ago.
Rising concerns about outlook for energy demand from China due to Covid-related lockdowns, and expectations of interest rate hikes by central banks weighed on oil prices.
The Bank of Canada today raised its benchmark rates by 75 basis points. The European Central Bank, which is scheduled to announce its rate decision on Thursday, is widely expected to announce a sharp hike in rates following eurozone inflation hitting a record 9.1% in August, going high above the bank's 2% target.
Traders also await weekly crude inventory data from the American Petroleum Institute (API) and U.S. Energy Information Administration (EIA). The API's report is due later today, while EIA is scheduled to release its inventory data Thursday morning.
