LONDON: Oil prices extended their slide on Wednesday on investor worries about the ailing state of the global economy, bearish oil demand signals from Opec+ and increased restrictions to curb Covid-19 in China.
Brent crude futures for October, due to expire on Wednesday, were down $2.71 at $96.60 a barrel following Tuesday’s $5.78 loss. The more active November contract was down $1.26, or 1.3 per cent, at $96.58 a barrel.
US West Texas Intermediate (WTI) crude futures were down $1.31, or 1.4pc, to $90.33 a barrel by 10:43 a.m. EST (1543 GMT), after sliding $5.37 in the previous session on recession fears.
Both contracts fell by more than 3% in earlier trade.
“The latest signs of stuttering growth are contracting Chinese factory activity in August and the slower-than-expected expansion of the country’s service sector,” Tamas Varga, analyst at PVM Oil Associates, said.
“Additionally, both the Fed and the ECB are thought to hike interest rates significantly next month, probably by as much as 0.75pc — and all these make equity investors run for the exit. Oil duly follows, at least for the time being.”
Published in Dawn, September 1st, 2022
