Oil extended losses below $100 a barrel as escalating fears about an economic slowdown rippled through global markets.
West Texas Intermediate futures fell for a third session to its lowest level in three months, after plunging 8% on Tuesday.
Oil has given up the bulk of its gains seen in the wake of Russia’s invasion of Ukraine, which drove prices above $130 a barrel in March. A stronger dollar and China’s rising Covid cases have added to the pressure.
Concerns over an economic slowdown have overshadowed tight physical crude markets. OPEC’s first outlook for 2023 suggests that there will be no relief for squeezed consumers, with more oil needed from the group even though most members are already pumping flat out.
US President Joe Biden has repeatedly called on OPEC to pump more and is scheduled to visit Saudi Arabia this week during a tour of the Middle East.
The kingdom along with the United Arab Emirates are the only cartel members with significant volumes of unused production capacity.