WTI crude futures fell to $84.5 per barrel on Monday, extending three weeks of declines as aggressive monetary tightening and recession fears weighed on the demand outlook ahead of the European Union embargo on Russian oil in December. Investors are preparing for a raft of interest rate decisions this week, led by the US Federal Reserve which is expected to deliver another supersized rate hike to combat inflation. Meanwhile, the Chinese city of Chengdu lifted a two-week lockdown, raising hopes of wider reopening throughout the world’s largest crude importer. On the supply side, US energy firms added oil and natural gas rigs for the first time in three weeks last week, indicating higher output moving forward. In Europe, Germany seized the local unit of a major Russian-owned oil refinery as the country grapples with a worsening energy crisis that threatened to drag the eurozone into a recession.
