Oil prices fell by more than $1 on Tuesday as concerns over a possible recession and China’s COVID-19 curbs outweighed an expectation of tight global supply and a pick-up in fuel demand with the U.S. summer driving season.
Brent crude futures for July fell $1.34, or 1.2%, to $112.08 a barrel by 0606 GMT. U.S. West Texas Intermediate (WTI) crude futures for July delivery dropped $1.28, or 1.2%, to $109.01 a barrel.
Brent gained 0.7% on Monday while WTI settled nearly flat.
Multiple threats to the global economy topped the worries ofthe world’s well-heeled at the annual Davos economic summit,with some flagging the risk of a worldwide recession.
International Monetary Fund Managing Director Kristalina Georgieva said she did not expect a recession for majoreconomies but could not rule one out.
“Investors were selling off as they expected higher oil prices to dent consumption for fuels worldwide,” said Toshitaka Tazawa, an analyst at Fujitomi Securities Co Ltd.
While Shanghai, China’s commercial hub, aims to normalise life from June 1 as its coronavirus caseloads decline, an increase in new COVID-19 cases in Beijing has raised concerns for further curbs.
via Reuters
