Oil prices fell more than ten dollars a barrel during yesterday’s trade as fears of a global economic slowdown dampening demand for crude overshadowed concerns about supply disruptions.
Brent crude futures were down $10.77, or 9.5 percent, at $102.73 a barrel by 1543 GMT. US West Texas Intermediate crude futures fell $9.30, or 8.6 percent, to settle at $99.13 a barrel.
Investors are increasingly concerned about demand in light of the broader tightening of global financial conditions as the U.S. Federal Reserve fights inflation by rapidly raising interest rates.
On Tuesday, the Reserve Bank of Australia raised interest rates for a third month, hinting at further increases as it sought to contain rising inflation even with the risk of deflation.
Oil prices continue to be supported by supply concerns as a result of Western sanctions on exports from Russia over the conflict in Ukraine and concerns about the ability of major oil producers in the Middle East to increase production. Current labor disputes in Norway.
The union that leads industrial action in Norway told Reuters that workers in the maritime sector have launched a strike that could lead to cuts in oil and gas production.
Norwegian oil producer Equinor said the strike is expected to reduce oil and gas production by about 89,000 barrels of oil equivalent per day, from which up to 27,000 barrels of gas per day are released. Oil production is expected to fall by as much as 130,000 barrels per day as of Wednesday, according to forecasts from Norway’s Oil and Gas Authority on Sunday.
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