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Figures on Wednesday did little to improve the economic
backdrop, showing British consumer price inflation jumped to
10.1% in July, its highest since February 1982, intensifying a
squeeze on households.
Brent crude fell as low as $91.51, the lowest since February,
and by 0931 GMT was down 5 cents at $92.29. U.S. West Texas
Intermediate (WTI) crude fell 20 cents, or 0.2%, to $86.33.
"The oil market is struggling to shake off recession fears, and
there is little to suggest that this will change any time soon,"
said Stephen Brennock of oil broker PVM.
Earlier, prices gained support from a report showing lower U.S.
crude and fuel stocks. Crude stocks fell about 448,000 barrels
and gasoline by about 4.5 million barrels, said sources citing
American Petroleum Institute figures on Tuesday.
Official inventory data from the Energy Information
Administration is out at 1430 GMT. [EIA/S]
Oil has soared in 2022, coming close to an all-time high of $147
in March after Russia's invasion of Ukraine exacerbated supply
concerns. Prices have fallen since as those concerns were edged
out by the prospect of recession.
"There are growing downside risks as a result of the growth
outlook and ongoing uncertainty around Chinese COVID
restrictions," said Craig Erlam of brokerage OANDA.
An exodus of participants, especially hedge funds and
speculators, has made daily price swings far greater than in
previous years.
On the oil supply front, the market is awaiting developments
from talks to revive Iran's 2015 nuclear deal with world powers,
which could eventually lead to a boost in Iranian oil exports if
a deal is reached.
The European Union and United States said on Tuesday they were
studying Iran's response to what the EU has called its "final"
proposal to save the deal.
(Additional reporting by Yuka Obayashi in Tokyo and Emily Chow
in Kuala Lumpur; Editing by Tomasz Janowski and Edmund Blair)
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