Oil falls on fears economic growth

Oil prices edged down on Wednesday as expectations grew that oil demand growth will fall as inflation and supply chain issues strain major economies, though surging prices for power generation fuel limited losses. Brent crude futures fell 50 cents, or 0.6 per cent, to $82.92 a barrel at 1112 GMT US West Texas Intermediate (WTI) crude futures fell 44 cents or 0.5 per cent to $80.20 a barrel.

Weighing on prices, China, the world’s biggest crude importer, released data showing September imports fell 15 per cent from a year earlier. China, along with Europe and India, remains mired in coal and natural gas shortages that have pushed up prices for the fuels burned for electricity generation and are leading to oil products being used as a substitute.

“There are growing expectations that the high prices for gas and thermal coal are likely to boost demand for alternative fuels such as diesel and fuel oil,” ANZ Research analysts said in a note.