Oil prices inch lower as China Covid, recession worries outweigh tight supply
Oil prices inched lower after seesawing through early trading on Tuesday, as worries that fuel demand would be hit by a possible recession and fresh Covid-19 curbs in China outweighed tight global supplies.
US West Texas Intermediate (WTI) crude fell 22 cents, or 0.2 per cent to $120.71 a barrel at 0353 GMT, while Brent crude futures eased 25 cents, or 0.2 per cent, to $122.02 a barrel.
“Discussion within the oil complex still revolves around Libya’s decline in production, China continuing to impose measures to slow the spread of Covid, and concerns around global recession woes driving demand destruction,” said Stephen Innes, managing partner at SPI Asset Management.
