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The
International Energy Agency said this week oil demand growth
would grind to a halt in the fourth quarter. [IEA/M] The dollar
held near recent peaks, supported by expectations the U.S.
Federal Reserve will continue to tighten policy. [USD/]
Brent crude was down 56 cents, or 0.6%, to $93.54 a barrel at
0951 GMT. U.S. West Texas Intermediate crude fell 44 cents, or
0.5%, to $88.04.
"There are many forces dictating the price action in oil markets
right now, with economic uncertainty right up there," said Craig
Erlam of brokerage OANDA. "The stronger dollar is potentially
another headwind."
Crude has dropped substantially after a surge close to its
all-time highs in March after Russia's invasion of Ukraine added
to supply concerns, pressured by the prospects of recession and
weaker demand.
New clashes between Armenia and Azerbaijan, an oil producer,
linked to a decades-old dispute between the ex-Soviet states
raised another risk to supplies, although a senior Armenian
official said on Wednesday a truce had been agreed.
"Whilst challenging the $100 hurdle is currently not a dead cert
it seems that a bottom at around $90 has been found basis Brent,
largely thanks to war-related supply fears," said Tamas Varga of
oil broker PVM.
Oil came under pressure from a strong dollar, which makes
dollar-denominated commodities more expensive for other currency
holders, ahead of a Federal Reserve meeting next week that could
hike interest rates by a jumbo 100 basis points. [MKTS/GLOB]
U.S. crude inventories rose by a more than expected 2.4 million
barrels, data showed on Wednesday - although again boosted by
the ongoing releases from the Strategic Petroleum Reserve, part
of a programme scheduled to end next month. [EIA/S]
(Additional reporting by Muyu Xu; Editing by Mark Potter)
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