Energy Preview: Oil Under $100 As Recession Fears Exacerbate

13 Jul 2022 , 08:36 AM

Oil prices are trying to recover from under $100 per barrel mark that it gave up in the previous session, falling more than 7% on Tuesday, amid persistent fears that a global economic slowdown will hit oil demand. WTI crude oil futures are currently up 0.23% at $ 96.06 per barrel. API data revealed build up in US crude oil and gasoline stocks last week. Meanwhile, renewed COVID-19 travel curbs in China also weighed on the market. Multiple Chinese cities are adopting fresh COVID-19 curbs, from business halts to lockdowns, to rein in new infections, with the commercial hub of Shanghai bracing for another mass testing effort after finding a highly-transmissible Omicron subvariant. However, oil producing cartel OPEC expecting an increase of 2.7mn b/d to 103mn b/d in global oil demand next year on healthy global economic growth could support the commodity. In its latest Monthly Oil Market Report (MOMR), Opec says its 2.7mn b/d demand growth forecast for 2023 assumes solid economic performance in major consuming countries. Also, the release of the US inflation will have a significant impact on oil prices. Powered by Commodity Insights