Following a brief bounce, oil fell to its lowest level in six months on Wednesday as worries about the possibility of a worldwide recession that would decrease demand eclipsed data showing lower US crude and gasoline supplies.
Data released on Wednesday showed that British consumer price inflation surged to 10.1% in July, its highest level since February 1982, worsening the economic situation.
Brent crude hit a low of $91.51, its lowest level since February, before rising 5 cents to $92.29 by 9:31 GMT. WTI crude for the US dropped 20 cents, or 0.2 percent, to $86.33.An earlier report showing decreased US crude and fuel supplies helped to support prices.
According to sources using American Petroleum Institute data on Tuesday, crude stocks decreased by roughly 448,000 barrels and gasoline inventories decreased by nearly 4.5 million barrels.At 14:30 GMT, the Energy Information Administration releases its official inventory statistics.
2022 has seen a significant increase in oil prices, almost reaching a record high of $147 in March following Russia’s invasion of Ukraine. Since then, prices have decreased as the possibility of a recession has surpassed those worries.
The growth forecast and persistent ambiguity around Chinese Covid regulations, according to brokerage Oanda’s Craig Erlam, have increased the downside risks.
Daily price swings are significantly larger than they were in prior years due to a departure of players, particularly hedge funds and speculators.