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Oil prices fell for the third consecutive session on Wednesday as the dollar strengthened and investors prepared to receive US inflation data amid concerns about fuel demand raised by the risks of a global recession and the tightening of Covid-19 restrictions in China.
By 0410 GMT, Brent crude futures fell 46 cents, or 0.5 percent, to $93.83 a barrel. The price of US West Texas Intermediate crude futures fell 54 cents, or 0.6 percent, to $ 88.81 a barrel.
Both benchmarks fell by two percent in the previous session.
The dollar rose to a 24-year high against the yen on Wednesday due to inflation concerns. A strong dollar makes dollar-denominated commodities more expensive for holders of other currencies and tends to affect oil and other riskier assets.
The US consumer price report is due on Thursday.
The International Monetary Fund on Tuesday lowered its global growth forecast for 2023 and warned of an increased risk of recession.
But the International Monetary Fund has also urged central banks to continue their fight against inflation, even as investors worry that monetary policymakers could cause a severe economic contraction by raising borrowing costs.
The oil market is also under pressure from the tightening of COVID-19 restrictions in China, the world’s second-largest oil consumer.
Major Chinese cities, including Shanghai and Shenzhen, have ramped up COVID-19 testing and tightened restrictions after infections rose to their highest levels since August.
On the supply side, a preliminary poll conducted by Reuters on Tuesday showed that US crude oil inventories rose by about 1.8 million barrels in the week ending October 7, after falling in the past two weeks.
