Commodities Buzz: Global Crude Oil Prices Weighed Down By Recession Fears Says IMF

12 Oct 2022 , 12:11 PM

The IMF noted in a latest update that global Crude oil prices, up by 3.5 percent between February and August 2022, surged to $120 a barrel in early March following Russias invasion of Ukraine. Prices reflected fears of oil export disruptions at a time of tight supply-demand balances as well as a muted response by the Organization of the Petroleum Exporting Countries and other producers following prior divestments in the fossil fuel sector. Strategic oil reserve releases by members of the International Energy Agency and slower demand amid COVID-19 lockdowns in China caused oil prices to fall below $100 in April. However, announced bans on Russian oil imports and expectations of broader sanctions?including in the area of maritime insurance and trade finance?coupled with outages elsewhere led prices to surge to $120 in early June. Since then, rising interest rates and recession fears have weighed on prices as the International Energy Agency revised global 2022 oil demand growth down from 3.3 million barrels a day (mb/d) to 2.0 mb/d in September. Powered by Commodity Insights