Oil prices extended losses in today’s session, as concerns regarding a possible global recession limiting demand outweighed fears of supply disruptions, highlighted by the expected production cuts in Norway.
Brent crude fell $10.26, or 9.04%, to $103.26 a barrel by 1604 GMT, and US West Texas Intermediate crude was down $9.1, or 8.4%, to $99.3 a barrel from Friday’s close. Trading in West Texas Intermediate crude was suspended on Monday due to a holiday in the United States.
Investors are becoming more concerned as the recent rise in gas and fuel prices is heightening fears regarding a recession. Investors are increasingly concerned regarding demand in light of a broad tightening of global financial conditions, as the US Federal Reserve combats inflation by rapidly raising interest rates.
On Tuesday, the Reserve Bank of Australia raised interest rates for a third month, pointing to further increases as it sought to contain rising inflation even with the risk of economic deflation.
Oil prices continue to receive some support from concerns regarding supplies as a result of Western sanctions imposed on shipments from Russia due to the conflict in Ukraine, as well as concerns regarding the ability of the main oil producers in the Middle East to increase production, as well as the current labor disputes in Norway.
