Oil prices dropped on Wednesday due to the speculation over oil demand growth decrease, further more major economies facing inflationary tendencies as well as energy and supply chain crisis has also affected the oil market.
The crude oil (Brent crude) decreased by 0.2% representing a $1.18 fall in oil price at 08:30 GMT to to $83.18 a barrel at 0830 GMT also crude futures fell by 0.2% to $80.41 a barrel.
China being the world biggest crude oil importers released reports detailing how the import level in September fell by about 15% from a year earlier. Europe as well as india and china still experience draconian effects on the natural gas shortage.
The International Monetary Fund on Tuesday cut its growth outlook for the United States and other major economies on worries supply chain disruptions and cost pressures are holding back a global economic recovery from the coronavirus pandemic.
A strong U.S. dollar, trading near a one-year high, also weighed on oil prices, as it makes oil more expensive for those holding other currencies.
However, oil watchers are still focused on whether soaring gas and coal prices will lead to more demand for oil products for power generation.
“There are growing expectations that the high prices for gas and thermal coal are likely to boost demand for alternative fuels such as diesel and fuel oil,” ANZ Research analysts said in a note.