Oil prices fall amid fears of an economic slowdown

Oil prices fell on Tuesday, amid fears of slowing economic activity and lower demand for fuel from China, in light of its adherence to its strict policy to contain the Coronavirus known as (Zero Covid).

Brent crude futures fell 41 cents, or 0.45 percent, to $91.21 a barrel by 0948 GMT, while US West Texas Intermediate crude futures fell 41 cents, or 0.48 percent, to $85.05 a barrel.

And US crude rose more than one percent earlier due to the dollar’s weakness, which makes oil cheaper for buyers of other currencies.

However, the dollar index, which measures the greenback against six major currencies, including the pound sterling, rose later in the session, which affected oil prices in early European trading.

Investors are also focused on the Bank of England’s plan to start selling its massive holdings of government bonds it raised during the coronavirus crisis. This has resulted in higher long-term returns, indicating increased risks to financial stability.

As for supply, a preliminary Reuters poll showed on Monday that US crude oil inventories are expected to rise for the second week in a row, and are estimated to have increased by 1.6 million barrels in the week ending October 14.