Oil prices slide as IMF warns of a tougher 2023

3 Jan 2023 , 11:11 AM

Oil prices fell from their highest levels in a month on Monday, as the dollar strengthened and the head of the International Monetary Fund warned of a tougher 2023 as major economies experienced slowing activity.

Brent crude futures were down 98 cents, or 1.1%, to $84.93 a barrel by 0148 GMT, while West Texas Intermediate crude was down 77 cents, or 1.0%, to $79.49 a barrel after the US dollar strengthened. A stronger dollar causes an increase in the cost of dollar-denominated commodities for holders of other currencies.

According to IMF Managing Director Kristalina Georgieva, the United States, Europe, and China – the main engines of global growth – are all slowing down at the same time. This will make 2023 more difficult than 2022 for the global economy.

Nonetheless, oil prices rose more than 2% on Friday, with Brent and WTI ending 2022 up 10.5% and 6.7%, respectively.

In a decree issued on February 1, President Vladimir Putin banned the supply of crude and oil products to nations that adhere to the cap for five months. The decree also included a clause that allows Putin to overrule the ban in special cases.

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