Crude oil benchmarks extended losses as fears over interest rate hikes hurting world oil demand were reinforced with recent monetary policy measures. Major central banks including the Federal Reserve, Bank of England and the European Central Bank raised rates recently and also expressed intentions to raise rates till inflation was brought under control.
Though the International Energy Agency's increase in projected world oil demand and hopes of easing Covid curbs in China had supported a bullish outlook to the black fluid in the past sessions, monetary policy induced recession and downturn in demand dominated sentiment on Friday.
Brent Oil Futures for February settlement, which had previously closed at $81.21 dropped to as low as $79.00, before recovering to its current level of $79.23, registering a loss of 2.44 percent. The day's high was $83.18.
West Texas Intermediate (WTI) Crude Oil Futures for January settlement plunged to $74.00 before recovering to its current level of $74.35, implying an overnight decline of 2.31 percent. The benchmark which was at $76.11 at previous close has touched a high of $76.57 in the day's trade.
