Crude oil falls $1 on demand fears, Saudi confirms cuts to year-end

Oil fell on Wednesday, as pledges by Saudi Arabia and Russia to continue crude output cuts to the end of 2023 were offset by demand fears stemming from macroeconomic headwinds.

Brent crude oil futures were down $1.58, or 1.74%, to $89.34 a barrel at 1045 GMT, while U.S. West Texas Intermediate crude (WTI) fell $1.60, or 1.79%, to $87.63 per barrel.

Oil prices remain under pressure from demand fears driven by macroeconomic headwinds.

“Market attention has shifted from the focus on the short term tightness to the implications of interest rates staying higher for longer, the subdued macro environment that entails, and how OPEC+ plans to deal with that when it meets on 26th November,” said Investec analyst Callum Macpherson.