Oil Sinks Further in Test of OPEC’s Resolve Amid Demand Concerns

  • China locks down megacity Chengdu, hurting consumption outlook
  • US currency rises toward record high as Fed battles inflation
WATCH: Oil continued its retreat Thursday. James Herron reports.Source: Bloomberg
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Oil fell to a two-week low amid escalating concerns about worldwide demand while a broader risk-off sentiment weighed on assets from metals to equities

West Texas Intermediate futures dropped 3.3% to settle at $86.61 a barrel on Thursday. Investors are focusing on tightening monetary policy around the world that could crimp economic growth and hit oil demand. The lockdown of the Chinese megacity of Chengdu to contain a Covid-19 outbreak added to the negative sentiment.