Brent Eases on Global Slowdown Concerns

Brent crude: futures eased toward $111 per barrel on Monday after jumping 2.4% in the previous session, as investors assessed looming risks of a demand-sapping global economic slowdown despite ongoing supply-side issues.

Oil has come under pressure last month as signs of an impending US recession, driven by the Federal Reserve’s aggressive fight against inflation, prompted a wave of selling in commodities.

Investors are also tracking China’s slow emergence from virus restrictions amid recurring outbreaks throughout the country.

Still, supply outages in Libya and expected shutdowns in Norway have offset some of the weakness in crude markets. Moreover, oil remains more than 40% up this year as the global economic recovery from the pandemic slump coincided with disrupted Russian supply due to the war in Ukraine.

OPEC+ also struggled to pump more crude due to underinvestment, capacity limits and political unrest in some member states.