Oil prices fell on Friday amid demand fears fuelled by rising interest rates and a stronger dollar.
Brent crude, global oil benchmark, fell 3.10 percent to $87.81 a barrel at 12.37 GMT+1 — first time since January 2022
US West Texas Intermediate also fell over 3 percent to $80.64 a barrel.
Oil Price Falls To $87 A Barrel — First Time In 9 Months
The development came as the MSCI all country world index (ACWI), the global equity index, hit a two-year low on Friday while the dollar index reached its highest level in two decades, putting downward pressure on oil.
Also, the pound fell to a 37-year low against the dollar as Kwasi Kwarteng, Britain’s new finance minister, announced historic tax cuts and huge increases in borrowing.
On Wednesday, the US Federal Reserve raised interest rates by 75 basis points, propelling central banks around the world to follow suit with their hikes, raising the risk of economic recession.
A recession would adversely affect oil demand, experts had cautioned.
Source: The Cable