Oil slips further as gloom pervades world markets

Oil prices continued to slide on Wednesday on investor worries about the ailing state of the global economy, the prospect of key central bank interest rate hikes, and increased restrictions to curb Covid- 19 in China.

US West Texas Intermediate ( WTI) crude futures were down $ 1.34, or 1.46percent, at $ 90.30 a barrel by 8.33am GMT, after sliding $ 5.37 in the previous session on recession fears.

Brent crude futures for October, due to expire on Wednesday, were down $ 1.79 at $ 97.52 a barrel following Tuesday’s $ 5.78 loss. The more active November contract was down $ 1.40, or 1.43percent, at $ 96.44 a barrel.

The price swings since the Ukraine conflict began six months ago have rattled hedge funds and speculators and thinned trading, which, in turn has made the market whipsaw even more, as seen on Tuesday.

“The latest signs of stuttering growth are contracting Chinese factory activity in August and the slower- than- expected expansion of the country’s service sector,” Tamas Varga, analyst at PVM Oil Associates, said.