Oil prices decreases due to economic slowdown

Oil prices decreased on Monday, ending three days of gains, on concerns U.S. interest rate increases may lead to a global economic slowdown and dent fuel demand.

Brent crude futures for October settlement was down $1.17, or 1.2 percent to $95.55 a barrel by 0054 GMT. This came with concerns over slowing demand in China because of a power crisis in some areas also affecting on prices.

U.S. West Texas Intermediate (WTI) crude futures for September delivery, due to expire on Monday, declined $1.12, or 1.2 percent at $89.65 a barrel.

The more active October contract was at $89.29, decreased $1.15, or 1.3 percent.

Both Brent and WTI jumped for a third straight day on Friday, but was down about 1.5 percent for the week on a stronger dollar and demand fears.

“Investors were worried that a possible steep rate hike by the Fed would cause an economic slowdown and sap fuel demand,” general manager of research at Nissan Securities Hiroyuki Kikukawa stated.

“China’s power restriction in some regions is also a concern as it could affect economic activity,” he concluded.