WASHINGTON (dpa-AFX) - Oil prices fell sharply on Thursday to extend recent losses on worries that aggressive interest-rate hikes by major central banks may lead to a global economic slowdown and dent fuel demand.
Bearish oil demand signals from OPEC+ as well as increased restrictions to curb COVID-19 in China also weighed on prices and offset data showing a sizable draw in U.S. crude stockpiles.
Brent crude futures for November delivery fell 1.6 percent to $94.15 a barrel, while WTI crude futures for October settlement were down 1.5 percent at $88.25.
A slew of surveys showed today that global factory activity slumped in August- raising concerns over a possible global recession.
As inflation worries mount, both the U.S. Federal Reserve and the European Central Bank are expected to raise borrowing costs aggressively later this month.
On the positive side, a report from the Energy Information Administration showed U.S. crude oil inventories fell by more than expected in the week ended August 26th.
The report showed crude oil inventories slid by 3.3 million barrels versus expectations for a decrease of about 1.5 million barrels.
Gasoline inventories declined by 1.2 million barrels, while distillate fuel inventories inched up by 0.1 million barrels.
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