(Bloomberg) -- Oil dropped for a third day on escalating concerns that a global slowdown will hurt energy demand amid a broad shift away from risk assets.

West Texas Intermediate fell below $89 a barrel after losing more than 3% over the previous two sessions. The losses have come as Federal Reserve policymakers vowed to drive rates higher to quell inflation, and the International Monetary Fund warned of a worsening outlook for the global economy.

Crude hit the lowest level since January last month, only to rebound after the Organization of Petroleum Exporting Countries and partners agreed to cut oil supply last week. Those gains are now unraveling as the Fed's stance aids the dollar, and investors turn away from commodities. Persistent efforts in China to contain Covid-19 have also threatened demand in the top oil importer.

Investors are in line for a wave of oil market intelligence over the coming two days as OPEC, the International Energy Agency, and the US Energy Information Administration all release outlooks. The reports will shed light on demand trends into 2023 and the likely impact of sanctions on Russian crude flows.

"A backdrop of recessionary concerns and oil demand downgrades usually makes it difficult for the oil market to sustain any significant price rally," Standard Chartered Plc said in a note. "We think this week's oil-balance reports are likely to turn market attention back toward a weakening demand outlook."