WTI crude retreats around $90.00 on recession-linked concerns

Oil prices are expected to slip towards $90.00 due accelerating global recession-linked fears. Lockdown in China and interest rate hikes by Western central banks have also trimmed oil price forecasts.

WTI futures have displayed a steep downside after surrendering the psychological support of 100.00 last week. Crude oil recorded three-month low at $91.70 on Tuesday. More downside is expected by the oil prices towards $90.00 as demand worries are likely to rise on lockdown worries in China.

The current monetary policy tightening measures is squeezing liquidity from the markets and the corporate sector is left with costly money. This has forced several investors to add more filters to their investment opportunities. Lower investment by the corporate results and Q2 earnings also hurt the oil demand.

Covid-19 renewed the fears over the path of economic activities and restrictions that could be reenforced on the movement of men, materials, and machines.

The release of the US CPI data will have a significant impact on oil prices. A higher inflation print in comparison to its estimates may shore up the dollar and hammer oil prices further. As per the market consensus, US inflation is seen at 8.8%.