Oil falls 2% on concerns economic slowdown may dent fuel demand | Reuters
Oil prices fell 2% in volatile trading on Monday, ending a three-day streak of gains, on fears that aggressive U.S. interest rate hikes may lead to a global economic slowdown and dent fuel demand.
Brent crude futures for October settlement fell $2.33, or 2.3%, to $94.39 a barrel by 11:35 a.m. ET (1535 GMT).
U.S. West Texas Intermediate (WTI) crude for September delivery - due to expire on Monday - was down $2.14, or 2.4%, at $88.63. The more active October contract was down $2.10, or 2.2%, at $88.34.
"The short- to medium-term trends for oil is down at present ... oil prices are reflecting the diminishing economic growth outlook right now as key demand-side regions such as the U.S. and China have shown signs of negative (U.S.) and slowing (China) growth," said Shaun Murison, Senior Market Analyst at foreign exchange trading provider IG.
The U.S. Federal Reserve will raise rates by 50 basis points in September amid expectations inflation has peaked and growing recession worries, according to economists in a Reuters poll. read more
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