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Alberta oil well in canola field Oil prices dropped on Thursday, as investors were worried that aggressive interest rate hikes from global policymakers would slow economies and dent fuel demand, while renewed restrictions to curb COVID-19 in China also added pressure. U.S. West Texas Intermediate (WTI) crude futures slid $1, or 1.12%, to $87.82 a barrel. Brent crude futures fell $1.14, or 1.20%, to $93.70 a barrel. “Growing fears over weakening fuel demand due to aggressive rate hikes by the U.S. and European central banks outweighed concerns over tight global supply,” said Hiroyuki Kikukawa, general manager of research at Nissan Securities. Recent signs of weakness in China’s economy and the country’s stronger pandemic restrictions also weighed on sentiment, he added. “The tug-of-war market reflecting sluggish demand outlook and tight supply estimates is expected to continue going forward,” Kikukawa said. China’s factory activity contracted for the first time in three months in August amid weakening demand, while power shortages and fresh COVID-19 flare-ups disrupted production, a private sector survey showed. Southern Chinese tech hub Shenzhen tightened COVID-19 curbs as cases continued to mount, with large events and indoor entertainment suspended for three days in the city’s most populous district, Baoan. […]
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