Crude Oil Prices Under Pressure As Global Concerns Grow

crude oil

China’s economic fortunes are weighed by policy and disruptive restrictions. Crude oil made a 1-year low overnight before recovering and finishing higher for the session. The WTI futures contract dipped below US$ 74 bbl, while the Brent contract looked below US$ 82 bbl.

Increasing concerns about global growth undermined risk appetite to start the week. China’s continuing pursuit of its zero-case Covid-19 policy, which requires widespread lockdowns, is seen as impeding an economic recovery there.

The policy has led to protests across several major cities in China. The police cracked down to prevent further demonstrations on Monday night. It is being reported that authorities are checking citizens’ identification in and around the key protest sites.

The world’s second-largest economy is a huge importer of energy, and the impact of a slowdown there could weigh on crude prices.

Some speculation is that they may consider cutting production more than previously flagged. They have previously said that they plan to reduce output by 2 million barrels per day. The practical implementation of such an announcement might be difficult to achieve given that the cartel and its allies have been unable to meet their current quota targets.

The Asia-Pacific trading session has seen oil prices ease off again, perhaps on the back of several speakers from the Federal Reserve. This included James Bullard, John Williams, and Lael Brainard.

The main theme from those three board members was that the Fed had more work to do in their fight against inflation, inferring tighter monetary conditions going forward.

Thomas Barkin added to the hawkish chorus in an interview with Bloomberg following the New York close.

Some clues for the move lower might have been in some of the underlying supply and demand dynamics. Last week saw both the WTI and Brent futures markets dip into contango.

Contango occurs when the contract closest to settlement is cheaper than the contract that is settling after the first one. It highlights a willingness by the market to take delivery later rather than sooner.

This Post Has 5 Comments

  1. Zita

    Wow, marvelous blog layout! How long have you been blogging for?
    you made blogging look easy. The full glance of your site is fantastic, let alone the content!
    You can see similar here ecommerce

  2. Scrapebox List

    Hey! Do you know if they make any plugins to
    assist with Search Engine Optimization? I’m trying to
    get my site to rank for some targeted keywords but I’m not seeing very good results.
    If you know of any please share. Cheers! You can read similar
    text here: Backlink Building

  3. sklep

    Wow, incredible blog structure! How long have you been blogging for?
    you made blogging look easy. The whole look of your
    site is excellent, let alone the content! You can see similar
    here sklep internetowy

  4. 20bet

    Your article gave me a lot of inspiration, I hope you can explain your point of view in more detail, because I have some doubts, thank you.

  5. binance nos registro

    I don’t think the title of your article matches the content lol. Just kidding, mainly because I had some doubts after reading the article.

Leave a Reply

Important Link

Fund Your Deriv Account
Withdraw Funds to Your Local Currency
VIP Trading Signals
Learn To Trade

Contact Us

Follow Us


Forex, Crypto, Options, and Binary Options have both large potential rewards and large potential risks. Therefore, before investing or trading any of the assets, ensure you are aware of and willing to accept the accompanying risks. Do not trade money you cannot afford to lose.

All Rights Reserved. None of the content of this website can be published elsewhere by any means without the prior consent of the owner(s). Please, check our terms & conditions and privacy policy before continuing to use this website.

This website and its owner(s) are not in any way liable for any incurred loss, whether caused by the information provided on this website or otherwise. The use of this website, including the content and information provided, is the user’s sole liability.