Oil prices are pulling back to start the week as concerns about a global economic slowdown and
weaker demand outweigh the OPEC+ production cuts announced in recent days.
West Texas Intermediate (WTI) crude oil, the U.S. standard, was 1.7% lower in London trading
at $89.60 U.S. per barrel. Brent crude oil, the international benchmark, slid 1.6% to $94.69 U.S.
a barrel.
The price declines come after both the International Monetary Fund (IMF) and World Bank
warned that the global economy is slowing down as central banks around the world raise
interest rates.
Oil prices hit their lowest level of the year in September as economic worries weighed on energy
markets. Investors and economists continue to assess the impact of higher interest rates as
central banks continue to fight inflation.
However, oil prices rebounded over the last week after the Organization of Petroleum Exporting
Countries and its allies (OPEC+) announced that they plan to cut oil output by as much as two
million barrels a day starting in November.
China, the world’s largest importer of crude oil, is once again imposing new lockdown measures
as part of that country’s zero COVID-19 policy, potentially hurting global energy demand moving
forward.
