Oil Prices Extend Decline on Recession Fears, China Curbs

Oil prices fell for a third straight session on Wednesday, as investors fretted about a hit to fuel demand from growing risks of a global recession and tightening Covid-19 curbs in China.
Brent crude futures fell 51 cents, or 0.5%, to $93.78 a barrel. US West Texas Intermediate crude was at $88.66 a barrel, down 69 cents, or 0.8%, CNBC reported.
Both benchmarks fell 2% in the previous session. The International Monetary Fund on Tuesday cut its global growth forecast for 2023 and warned of the increasing risk of a global recession.
But the IMF also urged central banks to keep up their fight against inflation even as investors worry policymakers could trigger a sharp economic downturn by raising borrowing costs too fast and too high.
The dollar gained broadly overnight, after a top Bank of England official told pension fund managers to finish rebalancing their positions by Friday, when the British central bank is due to end its bond-buying program.
A stronger dollar makes dollar-denominated commodities more expensive for holders of other currencies and tends to weigh on oil and other risk assets.
The oil market is also being pressured by tightening Covid-19 curbs in China, the world’s second-largest oil consumer. Big Chinese cities, including Shanghai and Shenzhen, have ramped up Covid-19 testing and tightened restrictions after infections rose to their highest since August.