Oil falls as China demand concerns fuel recession fears

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Oil prices fell on Monday, ending five straight days of gains, as investors looked to slowing economic activity in China, the world’s biggest crude importer, which revived concerns about a global recession and falling global fuel demand

Brent crude futures for December settlement fell by as much as 1.1%, and was last down 77 cents, or 0.8%, at $97.15 a barrel by 0645 GMT.

West Texas Intermediate crude for November delivery declined by as much as 1.1% and was last at $92 a barrel, down 64 cents, or 0.7%.

Services activity in China during September contracted for the first time in four months as COVID-19 restrictions hit demand and business confidence, data showed on Saturday.

The slowdown in the economy of China, the world’s second-largest oil consumer after the United States, adds to growing concerns about a possible global recession triggered by numerous central banks raising interest rates to combat high inflation rates.

Brent and WTI posted their biggest weekly percentage gains since March after the reduction was announced.

The OPEC+ cuts, which come ahead of a European Union embargo on Russian oil, will squeeze supply in an already tight market. EU sanctions on Russian crude and oil products will take effect in December and February, respectively.

 




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