Oil prices slip as IEA warns of global recession, dented fuel demand
Oil prices slipped on Thursday amid concerns that rising inflation will dent fuel demand and as the International Energy Agency warned that the global economy may go into recession.
Brent crude futures fell 23 cents, or 0.3%, to $92.22 a barrel by 1349 GMT. U.S. West Texas Intermediate crude was down 52 cents, or 0.6%, at $86.75 a barrel.
“[The] driver was more rate hikes following the consumer price index (CPI) release, triggering some demand concerns and weighing on risk appetite,” UBS analyst Giovanni Staunovo said on falling prices.
U.S consumer prices increased more than expected last month and underlying inflation pressures continued to build up, reinforcing expectations that the Federal Reserve will deliver a fourth 75-basis points interest rate hike next month.
