Oil prices dropped on Wednesday as demand worries resulting from macroeconomic headwinds outweighed Saudi Arabia and Russia's commitments to continue reducing crude supply through the end of 2023.

Brent crude slumped by 2.22% to $88.90 per barrel meanwhile U.S. West Texas Intermediate crude dropped 2.35% to $87.13 per barrel.

While the meeting was taking place, two sources confirmed that the output policy of the OPEC+ Joint Ministerial Monitoring Committee (JMMC) remained unaltered.

Fears about demand, which are a result of macroeconomic headwinds, continue to put pressure on oil prices.

Russia announced that it will maintain its current 300,000 bpd oil export reductions through the end of the year and would evaluate its voluntary 500,000 bpd output reduction, which was set in place back in April, in November.

The beneficial impact that the Kremlin's restriction on gasoline and diesel exports has had on the local market was also appreciated by Novak, who also noted that the Russian government is still keeping an eye on fuel prices in the country.

A solid greenback can reduce the price of oil for holders of other currencies, which can reduce demand as the dollar is the oil industry's primary trading currency.