Oil Prices Drop on Demand Fears Despite OPEC+ Supply Cuts

Oil prices fell over $1 on Wednesday due to demand fears from economic headwinds.

Saudi Arabia and Russia pledged to continue output cuts until end of 2023, offsetting demand concerns.

Focus shifted from short term tightness to implications of high interest rates and weak macro environment.

OPEC+ expected to hold current output at upcoming meeting, Russia may ease diesel ban soon.

Strong dollar weighing on oil prices as it makes oil expensive for holders of other currencies.