Oil prices mixed amid lingering demand worries

By Ebru Sengul Cevrioglu

IZMIR (AA) – Oil prices were mixed on Wednesday amid lingering demand worries due to recession sentiments, China’s continuing COVID-19 curbs, and the strengthening dollar.

International benchmark Brent crude was trading at $94.25 per barrel at 09.17 a.m. local time (0617GMT), a 0.04% drop from the last closing price of $94.29.

American benchmark West Texas Intermediate was trading at $89.55 per barrel, rising 0.22% from $89.35.

One of the major reasons for the price fluctuations is the soaring dollar, which has made oil more expensive for buyers using other currencies, putting downward pressure on prices.

Growing recession concerns are another factor, along with the enhanced COVID-19 curbs in China, the world’s second-largest oil consumer where demand has slipped due to lockdowns in major cities including Shanghai and Shenzhen.

The International Monetary Fund (IMF) warned on Tuesday that tight fiscal policies being pursued by central banks worldwide could push the global economy into recession next year.

The IMF also slashed its global economic growth forecast for 2023 to 2.7%.

“More than a third of the global economy will contract this year or next, while the three largest economies – the United States, the European Union, and China – will continue to stall. In short, the worst is yet to come, and for many people 2023 will feel like a recession,” read an IMF report.

Markets and investors are also on the lookout for latest US inflation data.