Brent crude oil : Traded near $96 per barrel on Tuesday after falling nearly 2% in the previous session, as a strong dollar and a weakening demand outlook countered fears about tighter supplies.
The dollar extended a rally on expectations that the US Federal Reserve will push ahead with its aggressive tightening plans, making greenback-priced oil more expensive for buyers holding other currencies.
Global recession fears that threaten energy demand also gripped markets, with JPMorgan CEO Jamie Dimon warning that the US and global economy are likely to enter recession by the middle of next year, while the IMF and World Bank saw rising risks of a global slowdown.
In top crude importer China, investors are worried that a resurgence of Covid-19 cases could force authorities to impose new lockdowns. Meanwhile, oil prices remain supported by OPEC+’s decision to reduce output significantly and an ongoing energy standoff between Russia and the West.
