Oil prices sink to lowest levels since January

[superadmin]

NEW YORK – Oil prices fell sharply today, pressured by mounting fears that a global economic slowdown would hurt demand for fuel.

The West Texas Intermediate for October delivery shed US$4.94 (RM22.23), or 5.7%, to settle at US$81.94 a barrel on the New York Mercantile Exchange.

Brent crude for November delivery decreased US$4.83, or 5.2%, to settle at US$88 a barrel on the London ICE Futures Exchange.

Both the US and the global crude benchmarks settled at their lowest levels since January, according to Dow Jones Market Data.

The pullback came as traders grew fearful that major central banks’ aggressive policy tightening to curb inflation would lead to a recession, dampening demand for energy.

The European central bank is widely expected to approve a big rate hike when it meets today.

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