Oil prices slid on Wednesday, extending the previous day’s losses, as investors braced for another aggressive interest rate hike from the U.S. Federal Reserve that they fear could lead to recession and plunging fuel demand.
Brent crude futures dropped 26 cents, or 0.3%, to $90.36 a barrel by 0040 GMT after falling $1.38 the previous day.
US West Texas Intermediate crude was at $83.74 a barrel, down 20 cents, or 0.2%. The October delivery contract expired down $1.28 on Tuesday while the more active November contract lost $1.42.
“The market tone remained bearish due to concerns that the aggressive monetary tightening in the U.S. and Europe would boost the likelihood of a recession and a slump in fuel demand,” said Toshitaka Tazawa, an analyst at Fujitomi Securities Co Ltd.
