Stock market news: Stocks fall for third day, Snap lays off, oil drops to $91 level

Oil prices fell on Tuesday
to pare some of the gains from the previous session, as the market fears that an increase in interest rates from central banks could lead to a global economic slowdown and lower demand for fuel.

Brent crude futures for October were down 56 cents, or 0.5 percent, at $104.53 a barrel by 0620 GMT, after rising 4.1 percent on Monday, the biggest increase in more than a month. The October contract expires on Wednesday and the most active contract for November was at $102.57, down 0.4%.

US West Texas Intermediate crude was at $96.86 a barrel, down 14 cents, or 0.1%, after rising 4.2% in the previous session.

Inflation is approaching double-digit territory in many of the world’s largest economies, a level not seen in nearly half a century, which could prompt central banks in the United States and Europe to resort to sharper increases in interest rates.

The head of the International Energy Agency (IEA) said on Monday that Russian oil production has exceeded expectations in the wake of the war in Ukraine, which also affects prices.

The agency chief also said that IEA member countries can release more oil from the Strategic Petroleum Reserves (SPR) if they find it necessary when the current scheme expires.

Also, offering some price support is in short supply. Saudi Arabia, the largest producer in the Organization of the Petroleum Exporting Countries (OPEC), last week raised the possibility of production cuts, which sources said could coincide with increased supplies from Iran if it concludes a nuclear deal with the West.

OPEC+, which includes OPEC, Russia and allied producers, meets to set policy on September 5th.

The American Petroleum Institute, an industry group, is due to release data on US crude stocks on Tuesday with the Energy Information Administration, the statistical arm of the US Department of Energy, to follow on Wednesday.

A preliminary Reuters poll on Monday showed that US crude oil stocks likely fell by 600,000 barrels as distillate and gasoline stocks fell.