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Oil prices fell on Tuesday on fears that the weakness of global economies caused by inflation will reduce demand for fuel, while Iraqi exports will not be affected by the ongoing clashes there.
Brent crude futures for October delivery fell $2.45, or 2.33 percent, to $102.64 a barrel by 1022 GMT, after rising 4.1 percent on Monday, the biggest increase in more than a month.
The October contract expires on Wednesday, and the November contract for delivery has become the most active in trading at $101.12 a barrel, down 1.76 percent.
US West Texas Intermediate crude was traded at $95.46 a barrel, down $1.55, or 1.6 percent, after rising by 4.2 percent in the previous session.
Inflation is close to double digits in many of the world’s major economies, a level not seen in nearly half a century, which could prompt central banks in the United States and Europe to resort to sharper increases in interest rates, which could limit economic growth and affect on demand for fuel.
SOMO also said it could redirect more oil to Europe if needed on Tuesday.
OPEC +, which includes OPEC members and allied producers led by Russia, will hold a meeting on the fifth of September to determine production policy.
Last week, Saudi Arabia, the largest producer in the Organization of the Petroleum Exporting Countries, raised the prospect of production cuts that sources said could coincide with an increase in supply from Iran if it reached a nuclear deal with the West.
