After a three-month decline in a row, oil started September with a drop amid concerns that a global slowdown would harm energy demand.
Oil started the month lower as concerns that a global slowdown would hurt energy demand eclipsed developments pointing to the rise, including a potential cut in OPEC+ supply and a significant drop in US crude inventories.
US crude oil (WTI) fell to $89 for the third consecutive month in August as central banks, including the Fed, tightened their policies to combat high inflation. This was the most extended series of declines since April 2020.
Oil tumbled more than 20 percent in the three months to August as the Fed and other central banks raised interest rates, fueling recession concerns. This decline has prompted crude oil to roll back all its gains since Russia invaded Ukraine at the end of February, starting with Saudi Arabia, showing signs that OPEC+ countries could reduce supply.
