Oil prices gave up initial gains on Wednesday and turned lower, losing more than $3 to their lowest level since the war in Ukraine, on demand concerns fueled by a looming recession and weak trade data from China.
Brent crude futures fell 3.40, or 3.66%, to $89.43 a barrel by 13:38 GMT, touching its weakest level since February 3 and falling below $90 a barrel for the first time since February 8.
US West Texas Intermediate crude futures fell $3.42, or 3.94%, to $83.46 a barrel, its lowest since January 24.
Oil prices rebounded after Russian President Vladimir Putin said on Wednesday that Moscow would stop sending its gas and oil shipments if a price cap on Russian energy supplies were imposed.
A preliminary poll conducted by Reuters on Tuesday showed that US crude inventories are expected to decline for the fourth consecutive week, falling by an estimated 733,000 barrels in the week ending September 2.
Weekly data on US inventories will be released from the American Petroleum Institute and the Energy Information Administration on Wednesday and Thursday, a day later than usual due to a public holiday on Monday.
Despite a looming supply shortage, the Organization of the Petroleum Exporting Countries and its allies in the cartel known as OPEC+ decided to cut production targets by 100,000 barrels per day in October.