Oil Prices Tumble as Higher Borrowing Costs Dent Demand

Oil prices have taken a dip due to concerns about demand, particularly in light of resilient US economic activity. According to Reuters, borrowing costs are expected to remain higher for longer, which could negatively impact demand.

Ahead of the release of US crude oil stockpiles data later on Thursday, Brent futures fell by 26 cents or 0.3 percent to $83.34 a barrel as of 09:30 a.m. Saudi time. Similarly, US West Texas Intermediate crude dropped by 23 cents or 0.3 percent to $79.00.

Market strategist Yeap Jun Rong noted that the 'broader risk-off environment' has led to downward pressures on oil prices, overriding the larger-than-expected drawdown in US crude inventories from recent API data.