DUBLIN: Oil prices fell to their lowest levels since February on concerns about a possible recession and falling fuel demand. Brent crude fell 50 cents (0.5%) to $93.62 a barrel. US West Texas Intermediate crude was down 66 cents (0.8%) at $87.88. Oil prices came under pressure as the market fretted over the impact of inflation, but signs of tight supply kept a floor under prices.
Meanwhile, the OPEC+ producer group agreed to increase oil production by 100,000 barrels per day (bpd) in September, the smallest increase since 1982.
The Bank of England has recently warned that a recession is certain. The interest rate was also raised to the highest level since 1995. This fueled fears of a recession.
European Union sanctions banning seaborne imports of Russian crude and oil products will come into effect on December 5. With this, the supply in winter is expected to reach a worrying level. Meanwhile, with the EU halting seaborne Russian imports, the key question has been whether Middle Eastern producers will reroute their barrels to Europe.