Crude oil prices slumped on Monday as prospects of interest rate hikes by the Federal Reserve stir concerns in the markets, with fears of an economic downturn and rising costs clouding the economic outlook.
The drop in prices was seemingly driven by the heatwave-related power shortage in the southwest of China, the world's top oil importer, crippling the demand for crude. Meanwhile, the euro slipped below parity against the American dollar, hitting a five-week low.
West Texas Intermediate (WTI) for settlements in October plunged by 2.20%, selling at $88.48 per barrel at 4:17 am ET. At the same time, Brent for the same month's deliveries plummeted by 2.10%, going to $94.61 per barrel.
