On Thursday, brent crude oil slipped 3% as expectations of weaker demand and a strong US dollar ahead of a potentially large interest rate gain outweighed supply concerns.

The International Energy Agency (IEA) stated this week oil demand growth would crumble to a halt in the fourth quarter. The dollar maintained near recent peaks, supported by expectations the US Federal Reserve will continue to tighten policy.

Brent crude was down USD 2.72, or 2.9 per cent, to USD 91.38 a barrel at 13: 42 GMT. US West Texas Intermediate crude tumbled USD 1.63, or 1.8 per cent, to USD 86.85.

Oil also declined after a late-night deal to avert a US railroad strike, that could have hit food and fuel supplies. The prospect of a strike lent the market some support on Wednesday. Crude has declined substantially after a surge close to its all-time highs in March after Russia’s invasion of Ukraine added to supply concerns, pressured by the prospects of recession and weaker demand.

Oil came under pressure from a strong dollar, which makes dollar-denominated commodities more expensive for other currency holders. US crude inventories grew by a more than expected 2.4 million barrels, although they were again augmented by the ongoing releases from the Strategic Petroleum Reserve, part of a programme scheduled to end next month.