Oil prices fell the most in more than three months as weak Chinese trade data and uncertainty over whether the Federal Reserve is done raising interest rates overshadowed the outlook for oil demand.
West Texas Intermediate fell 4.3 percent to close at about $77 a barrel, the lowest oil price since July 21st. The decline widened further that afternoon after WTI fell below its 200-day moving average, a sign of long-term weakness that usually spurs more selling.
Federal Reserve Bank of Minneapolis President Neel Kashkari said it was too early to declare a victory over inflation, and that a stronger dollar could dampen demand for oil by making it more expensive for importers. He also said the risk of excessively tight monetary policy was better than slightly tighter monetary policy, and he worried that inflation could rise again.
Meanwhile, trade data from China, the world's largest importer of crude, showed that the country's economic recovery is in jeopardy, as overseas shipments fell 6.4 percent last month in a weaker-than-expected decline, while imports rose 3 percent year-on-year.
