Oil slumps below $85 for first time since January on demand fear

Oil tumbled to the lowest since January as a dollar surge and global demand concerns weigh on prices despite the threat of disruption to Russian supplies.

US benchmark West Texas Intermediate sank below USD 85 while the global Brent benchmark fell below USD 90. A dollar gauge reached an all-time high on Wednesday, offering a macro headwind at a time when the oil market is grappling with potential slowing demand in China.

With central banks jacking up rates to quell inflation, investors are concerned economies may be tipped into recession. In China, strict virus curbs are damping demand, with major regions from Chengdu to Shenzhen extending lockdowns or adopting movement controls.