Oil prices settled sharply lower on Wednesday, slumping below levels seen prior to Russia's invasion of Ukraine as downbeat Chinese trade data fed investor worries about recession risks, El.kz cites Reuters.
Brent crude futures settled down $4.83 to $88 a barrel, falling below $90 a barrel for the first since Feb. 8. U.S. West Texas Intermediate crude settled down by $4.94, or 5.7%, to $81.94, its lowest since January.
"Right now the market is basing its concerns about what will happen due to sharply higher energy prices in Europe, slowing demand in Europe, and interest rates rising," said Phil Flynn, an analyst at Price Futures Group.
Several world central banks are slated to keep hiking rates to fight inflation, but economists have said the United States appears better placed to weather the storms. That has boosted the dollar to a 24-year peak against the yen and a 37-year high versus sterling. The stronger greenback pressures oil prices, since most worldwide oil sales are transacted in dollars.