Oil falls on recession fears, anti-Covid-19 restrictions in China

Oil prices fell by nearly a dollar on Tuesday, on 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 as the summer travel season begins in the United States.

Investment banks including UBS and Goldman Sachs have 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.

By 08:15 GMT, Brent crude futures fell 56 cents, or 0.5%, to $112.86 a barrel.

West Texas crude fell 72 cents, or 0.7%, 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 reaching $139 a barrel in March, its highest level since 2008, after the Russian invasion of Ukraine fueled supply concerns.