Oil plunged on demand concerns and the strong US dollar

International benchmarks for crude oil slumped more than 3% on Thursday, 15 September 2022 ahead of the Federal Reserve meeting that is expected to deliver another large increase in key interest rate. A stronger US dollar makes commodities traded in this currency more expensive for overseas investors. Besides, the World Bank sees a higher risk of the world tipping into a financial recession in 2023, reviving concerns over the demand outlook.

Brent fell $3.26 or 3.5% to close at $90.84/barrel. 

WTI loses $3.38 or 3.8% to settle at $85.10/barrel.