Oil prices fell on Wednesday as the Organization of the Petroleum Exporting Countries prepared to meet to discuss output.
The rise in bond yields over the past few weeks has knocked oil prices on concern that higher borrowing costs will weaken demand. Economic data, including a report Tuesday showing job openings increased by the most in more than two years, have fueled expectations that the Federal Reserve may increase interest rates and keep them higher for longer.
OPEC isn’t widely expected to change its output quotas after Saudi Arabia and Russia agreed to additional voluntary cuts, on top of the reductions in production by OPEC. Limiting supply could put a floor under prices, even as the outlook for demand dims.
Brent crude, the international benchmark, slipped 0.6% to $90.40 a barrel. Prices are still 18% higher than three months ago. West Texas Intermediate, the U.S. standard, declined 0.7% to $88.57 a barrel.
“Concerns about the U.S. potentially heading for a more difficult landing if interest rates are raised further have weighed down prices in recent sessions,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
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