Global Recession And New Virus Restrictions Send Oil Down.
London, Monday, 11 July 2022
After registering a loss last week in choppy trading, WTI petroleum futures dropped below $104 a barrel on Monday as continued supply-side problems were overcome by worries about a global recession and potential new virus restrictions in China.
As major central banks rush forward with aggressive rate hikes to tackle growing inflation, market sentiment is still dominated by fears of a worldwide recession that will harm energy consumption.
Growing viral infections across China and the identification of a novel Omicron subvariant in Shanghai also stoked concerns about the possibility of wider lockdowns across the nation.
The market is still concerned about Western nations' efforts to cap Russian oil prices, and President Vladimir Putin has warned that more sanctions might have "catastrophic" effects on the world energy market.
This week, President Joe Biden will also travel to Saudi Arabia in a bid to bring down the economy's suffering from high energy prices.
(Report by: The Decision Maker - Finance editors)