Crude oil futures ended deeply in red with cut of over five and half percent on Wednesday on demand worries. Rising concerns about the outlook for energy demand from China due to Covid-related lockdowns and expectations of interest rate hikes by central banks weighed on oil prices. The Bank of Canada raised its benchmark rates by 75 basis points. The European Central Bank, which is scheduled to announce its rate decision on Thursday, is widely expected to announce a sharp hike in rates following eurozone inflation hitting a record 9.1% in August, going high above the bank’s 2% target.
Benchmark crude oil futures for October delivery fell $4.94 or about 5.7 percent to settle at $81.94 a barrel on the New York Mercantile Exchange. Brent crude for November delivery dropped $4.83 or about 5.2 percent to settle at $88 a barrel on London's Intercontinental Exchange.