Crude oil is headed for longest slump since 2020 amid growth concerns
Oil is headed for a third monthly decline, the longest losing run in more than two years, on concern that tighter monetary policy and China’s economic slowdown will impact crude demand.
West Texas Intermediate dropped as much as 3.4 per cent to trade below $90 a barrel, putting it on course for a monthly decline. Bearish sentiment is mounting amid slowing economic growth for major oil consumer China while Fed officials reaffirmed their commitment to raising interest rates to cool rapid inflation.
“This morning’s price weakness is a summation of overall sentiment for the month of August, in which rising central bank interest rates are seen as the brake pedals to oil demand growth,” said Harry Altham, an energy analyst for StoneX Group.
