Oil falls 3% on recession fears

Oil prices continued their decline on Wednesday as investors worried about the weakness of the global economy and the possibility that central banks will raise interest rates and increase restrictions to curb the outbreak of COVID-19 in China.

US West Texas Intermediate crude contracts fell $2.58, or 2.82 percent, to $89.06 a barrel by 0939 GMT, after dropping $5.37 in the previous session on recession fears.

Brent crude futures for October delivery, due to expire on Wednesday, also fell $3.56 at $95.75 a barrel, after falling $5.78 on Tuesday. And futures contracts for November delivery fell $2.70, or 2.76 percent, at $95.14 a barrel.

Gazprom, Russia’s fastest-growing oil producer, said it plans to double its crude production in a major field in West Siberia thanks to the launch of a new unit.

The company added that it aims to increase oil production in the Zagren field to 5.5 million tons (more than 110 thousand barrels per day), and production in the field reached 2.5 million tons last year.

Reports said that the OPEC+ alliance is not discussing reducing oil production, despite previous reports indicating the possibility of reducing supplies in the coming period.

According to sources in the group, the idea of reducing oil supplies has not been discussed, considering that it is too early to discuss reducing production.

Earlier, reports revealed that the Organization of Petroleum Exporting Countries and its allies are ready to reduce crude production if the oversupply of crude begins to grow if Iran reaches a nuclear agreement with Western countries.