Oil’s main international benchmark fell below $70 per barrel on Tuesday, the first time it has done so since the end of 2021, amid mounting concerns about slowing global growth.
Meanwhile, global stock markets diverged as traders assessed the outlook for interest rates in the United States and Europe and looked ahead to the release of fresh consumer inflation data on Wednesday.
Brent crude slumped more than three percent to below the $70 per barrel level, while the main US contract, West Texas Intermediate (WTI), tumbled during trading and closed down more than four percent.
Analyst Tamas Varga at PVM Oil Associates said the OPEC oil cartel revising its demand estimates lower was one reason for the fall, but not the main one as the changes were minimal.
“Chinese economic woes — August crude oil imports fell seven percent on the year — and the growing belief that the Fed will only cut 0.25 percent next week weigh more heavily in the current sell-off,” he told AFP.
