Oil fell by about a dollar on Tuesday, due to fears of a possible recession and restrictions to combat “Covid-19” in China, which outweighed the impact of tight global supply and expectations of increased demand for fuel with the start of the summer travel season in the United States.
Investment banks, including UBS and Goldman Sachs, cut their forecasts for China’s growth in 2022. At the same time, the director of the International Monetary Fund said that she does not expect a recession in the major economies, but it cannot be ruled out.
Brent crude futures fell 56 cents, or 0.5 percent, to $112.86 a barrel. West Texas Intermediate crude fell 72 cents, or 0.7 percent, to $109.57 a barrel.
Beijing is ramping up quarantine efforts to end the coronavirus outbreak, while Shanghai is lifting lengthy lockdown measures within days.
Oil prices have risen this year, with Brent crude hitting $139 a barrel in March, its highest since 2008, after the Russia-Ukrainian conflict fueled supply concerns. (Archyde.com)