WTI futures fell below $90 a barrel for the first time since February, the month Russia invaded Ukraine, Bloomberg reports.
Futures fell as much as 1% to $89.80 a barrel. Oil prices have lost gains since the start of the war as higher interest rates and a looming global economic slowdown threaten demand.
On the supply side, some of the extreme tightness seen in oil markets in recent months has also eased. Traders are paying smaller premiums for spot-delivery barrels and so far there is limited evidence of a significant hit to Russia’s crude exports despite the sanctions.
Falling prices will continue to help cushion the impact of higher fuel prices, which have fueled runaway inflation in recent months.
On Wednesday, OPEC and its allies announced one of the smallest increases in output, a sign of limited available spare capacity.
Source: Capital
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