Oil prices swing after slumping on demand concerns and recession fears
Oil prices edged higher on Wednesday after plummeting overnight due to demand concerns and fears of a global recession as the International Monetary Fund downgraded the growth rate of the world’s largest economy.
Brent, the benchmark for two thirds of the world’s oil, fell about 7 per cent to below $100 a barrel but rebounded on Wednesday and was 0.89 per cent higher at $100.7 a barrel at 1.28pm UAE time. West Texas Intermediate, the gauge that tracks US crude, was up 0.88 per cent at $96.68 a barrel after plunging 8 per cent.
Crude prices slumped as Opec said in its monthly outlook report it expects oil demand to exceed supply by about 1 million barrels a day in 2023.
World oil demand is expected to exceed pre-pandemic levels in 2022, but the Russia-Ukraine war, pandemic-related developments and inflationary pressures are posing headwinds.
Higher commodity prices and supply chain disruptions are exacerbating inflation as well as increasing economic uncertainty and growing fears of a global recession.
