Oil prices slide 3% to two-week lows

Oil prices tumbled 3% in European trade to two-week lows under pressure from weaker global demand on fuel. 

Prices are also pressured by a surge in dollar's valuation against major rivals, making commodities costlier to holders of other currencies. 

Global Prices

US crude fell 3.7% to $82.11 a barrel, the lowest in two weeks, while Brent declined 2.9% to $88.54 a barrel, the lowest since September 8. 

US crude rose 0.2% on Friday, while Brent added 0.7%, on short-covering after sustaining hefty losses. 

Oil prices are down 0.8% so far this week on track for the third weekly loss in a row. 

Global Demand

The International Energy Agency expects fuel demand to stop growing in the fourth quarter due to an expected global recession as central banks tighten monetary policies. 

In China, the world's second largest fuel consumer, demand remains weak due to continuous Covid 19 restrictions and a slowdown in industrial activities. 

The Dollar

The dollar index rose 0.5% on Monday against a basket of major rivals, in turn pressuring dollar-denominated oil futures. 

The spike comes after US 10-year treasury yields surpassed 3.5% for the first time since 2011. 

Tomorrow, the Federal Reserve will convene to discuss policies, while expected to increase interest rates by 75 basis points to 3.25%.