Oil falls more than 5% as markets wary of global recession

By Murat Temizer

ANKARA (AA) - Oil prices fell 5.89% on Tuesday as central banks' move to aggressively increase interest rates to combat inflation raised fears of a global recession.

International benchmark Brent crude was trading at $100.79 per barrel at 05.00 p.m. local time (1400 GMT) for around 6% decrease after the previous session closed at $107.1 a barrel.

Fears of lower global oil demand put negative pressure on prices as world's central banks increase interest rates to tame inflation and a new wave of COVID-19 pandemic forces Chinese cities to take drastic action.

Also, US President Joe Biden is planning to visit Saudi Arabia this week during a tour to the Middle East.

US National Security Adviser Jake Sullivan said on Monday that Biden will make the case for greater oil production from OPEC when he meets Gulf leaders in Saudi Arabia.

The world has never witnessed such a major energy crisis in terms of its depth and its complexity, Fatih Birol, executive director of the International Energy Agency, said on Tuesday.

However, OPEC's first look at 2023 showed no sign of a relief from market tightness.