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Crude oil futures settle deeply in red on demand concerns

18 Nov 2022 Evaluate

Crude oil futures ended deeply in red on Thursday on demand concerns after mounting COVID-19 cases in China. Sentiments remained weak as the International Energy Agency (IEA) has once again lowered its global oil demand growth estimate for next year, citing significant uncertainties for the oil market such as weak economic growth in China, Europe's energy crisis and a strong dollar. Meanwhile, fears of more aggressive hikes in U.S. interest rates also dampened sentiments. 

Benchmark crude oil futures for December delivery fell $3.95 or about 4.6 percent at $81.64 a barrel on the New York Mercantile Exchange. Brent crude for January delivery dropped $2.92 or about 3.14 percent to settle at $89.94 (Provisional) a barrel on London's Intercontinental Exchange.