I retreated oil pricesAs fears of a global economic slowdown overshadowed the risk of tightening crude supplies from “OPEC” and its partners.
West Texas Intermediate crude settled near $89 a barrel, paring the gains made by crude last week in the wake of the decision by the Organization of the Petroleum Exporting Countries (OPEC) and its allies to cut production. Prominent Wall Street entities, including JPMorgan Chase & Co CEO Jamie Dimon, said that the US and global economies are likely to plunge into recession next year, as he warned International Monetary Fund The World Bank has an increased risk of a slowdown.
“Lack of risk appetite and technical moves seem to be responsible for the drop in crude following a few very bullish sessions following the OPEC+ quota cut announcement,” said Bart Mellick, head of commodity strategy, TD Securities.
There is more uncertainty regarding the outlook for demand in China, the world’s largest importer of crude oil, as authorities indicate there will be no pause in the country’s “zero Covid” policy. The Communist Party’s main newspaper said in a commentary on Tuesday that its approach would be sustainable, and that the country should stick to it, as it is key to stabilizing the economy and protecting lives.
European Union sanctions once morest Russia, which are set to take effect on December 5, have begun to affect trade due to the time delay between the purchase of goods and their transportation to their destination.