Oil fell on a three-day slump on Wednesday as fears of a slowdown in the global economy and declining demand came as central banks tightened monetary policy.
Earlier, crude oil prices temporarily rose, backed by the announcement by the Energy Information Administration (EIA) that US oil reserves had fallen in the past two weeks. In particular, the EIA announced that US stocks fell by more than 3 million barrels.
However, the upward reaction of crude to the news of declining stocks did not last, as growing fears that the “battle” of inflation could hit economic growth, both in the US and elsewhere, ultimately proved stronger than concerns about supply-level shortages, sending prices back to red.
Meanwhile, investors, traders and market participants have their eyes on the two-day meeting of OPEC + member countries that started today and ends tomorrow. The OPEC countries and their allies are expected to confirm tomorrow their current agreement to increase their production in August by 648,000 barrels.
West Texas Intermediate crude for August delivery fell $ 1.98, or 1.8%, to close at $ 109.78 a barrel on the New York Mercantile Exchange.
Brent crude for August delivery slipped $ 1.72, or 1.5 percent, to close at $ 116.26 a barrel on the New York Mercantile Exchange. The most active fuel contract, delivered in September, fell $ 1.35 or 1.2%, closing at $ 112.45 a barrel.