Oil Prices Drop Below $80 as Demand Worries Outweigh Supply Cuts
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Oil fell below $80 a barrel as doubts emerged on whether the Fed was done tightening policy, outweighing supply cuts by Saudi Arabia and Russia.
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West Texas Intermediate dropped over 2% as broader markets fell and the dollar strengthened after a Fed official said it's too soon to declare victory over inflation.
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Demand concerns driven by weak economic growth in Europe and potential refinery cuts in China also weighed on prices.
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Upcoming US data on inventories and monthly energy outlook may provide further clues on demand.
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Oil has dropped despite OPEC+ supply cuts and geopolitical risks like the Israel-Hamas war, as the market discounts disruption risks.