Oil slides nearly 4% on heightened recession worries and a fresh 20-year high for the US dollar

Oil prices fell to a nine-month low on Friday as recession fears swept through global risk assets and the US dollar hit a fresh two-decade high.

The price of West Texas Intermediate crude fell to its lowest point in months. The decline was cut in half. The price of oil fell to its lowest level since January.

Both crudes were headed for a decline of more than 4% for the week.

Craig Erlam, senior market analyst at Oanda, said in a note that the threat of a global recession continues to weigh on oil prices. A recession is the price to pay for getting a grip on inflation, which could weigh on demand next year, according to central banks.

The Federal Reserve, the Bank of England, and the central banks of Norway and Switzerland all raised interest rates this week due to high inflation caused by increases in energy and food prices. The Federal Open Market Committee is aiming to slow activity in the world's largest economy, and it is expected to stretch its rate-hiking cycle into the future.

Stock markets in Europe and Asia fell on Friday due to worries about a recession.

As the US Dollar continued to march higher, oil prices fell as well. The US Dollar index reached a new 20-year high on Friday. Gains in the dollar's value can hurt the price of oil because it makes it more expensive to buy it in foreign currency.

The index, which tracks the performance of the US dollar against a number of foreign currencies, was on course to rise this week. The Fed's rate hike this week of 75 basis points was the third consecutive meeting in which the fed funds rate increased. Demand for dollars has increased due to rising Treasury yields.

According to a report Friday, European Union officials are rushing to reach a deal on capping prices for Russian oil after Putin increased his aggression against Ukraine. The embargo on Russian crude will begin on December 5.