Oil prices slid on September 23, with the US crude benchmark slipping below the $80-per-barrel mark for the first time since early January as rising interest rates around the world darkened demand outlook for the key commodity.
At 06:54 pm IST, Brent crude futures traded 3.79 percent lower at $87 a barrel while US West Texas Intermediate (WTI) crude futures were trading at $79.79 per barrel, down 4.53 percent, as per oilprice.com.
That said, the black gold is poised for the longest weekly streak of loss this year and set for its first quarterly loss in over two years.
The weakening demand comes amid fears over further disruption after Russia launched referendums earlier today. This was aimed at annexing four occupied regions of Ukraine, which Kyiv called an illegal sham that it said included threats to residents if they do not vote.
On the supply side, the concerns have been aggravated after efforts to revive the 2015 Iran nuclear deal hit a roadblock.
However, a significant buying spree from the US can provide some support to the crude oil prices going ahead.
According to a recent Bloomberg report that cited sources, the US may begin refilling its emergency oil reserve when crude prices dip below $80 a barrel.
Biden administration officials are aiming toward protecting US oil-production growth and preventing crude prices from plummeting, it added.
Meanwhile, global equities hit a two-year low on Friday while the dollar index reached its highest level in two decades, putting downward pressure on oil.(With inputs from agencies)