Oil tumbles on inflation woes, Iraq exports

Oil prices fell Tuesday on fears that an inflation-induced weakening of global economies would soften fuel demand, and as Iraqi crude exports have been unaffected by clashes.

Brent crude futures for October settlement fell $2.45, or 2.33%, to $102.64 a barrel by 1022 GMT, after climbing 4.1% on Monday, the biggest increase in more than a month.

The October contract expires on Wednesday and the more active November contract was at $101.12 a barrel, down 1.76%.

U.S. West Texas Intermediate crude was at $95.46 a barrel, down $1.55, or 1.6%, following a 4.2% rise in the previous session.

Inflation is near double-digit territory in many of the world’s biggest economies, a level not seen in close to a half century. This could prompt central banks in the United States and Europe to resort to more aggressive interest rate hikes that could curtail economic growth and weigh on fuel demand. read more

“The economy will continue to remain slow with the Feds aggressive monetary policies. Investors are now waiting for the monthly employment data on Friday,” said Kunal Sawhney, chief executive officer, Kalkine Group.

Prices took a tumble after comments from Iraq’s state-owned marketer SOMO that the country’s oil exports are unaffected by unrest, UBS analyst Giovanni Staunovo said. read more

Baghdad seeing its worst fighting for years as clashes between Shi’ite Muslim groups spill into a second day. read more

SOMO also said on Tuesday it can redirect more oil to Europe if required. read more

The marke....

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