Oil prices weaken on hawkish Fed rhetoric, concerns about demand

Oil prices fell about $1 a barrel on Thursday in volatile trading as investors weighed the risk that rising interest rates could trigger a recession and cut demand for fuel.

Brent crude futures fell 90 cents, or 0.8%, to $110.84 by 11:20 a.m. ET (1520 GMT). U.S. West Texas Intermediate (WTI) crude futures were down $1.07, or 1%, at $105.12.

Investors were still trying to assess whether inflation-fighting central banks could push the world economy into recession as they raise interest rates.

“Recession fears have their grip on markets, but the mood swing is rather one of ebbing optimism than swelling pessimism,” said Julius Baer analyst Norbert Rucker.