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Crude Oil Prices Steadied As Traders weigh supply concerns against a weakening demand outlook.

WTI Crude oil steadied near $92 per barrel while Brent crude oil steadied near $98 per barrel on Tuesday as traders weighed supply concerns against a weakening demand outlook.

Food prices moderated (6.7% vs 7.0% in August), amid declines in cost of clothing (-2.3% vs 1.6%), health (-0.6% vs -0.6%), and communication (-1.6% vs -0.2%).

By contrast, prices increased further for furnishing & household maintenance (0.6% vs 0.7%), housing(2.4% vs 2.4%) and transport (5.9% vs 5.9%), recreation and culture (2.7% vs 2.2%), restaurants and hotels (3.9% vs 3.2%) and miscellaneous goods and services (13.8% vs 13.7%).

The US crude oil benchmark climbed in recent weeks on a tightening supply outlook, with OPEC+ slashing output by 2 million barrels a day in November, while the European Union ban on Russian oil is set to take effect in December and will be followed by a halt on oil product imports in February.

Meanwhile, oil prices retreated from a recent high on Monday as China reaffirmed its commitment to the zero-Covid policy that has dampened demand in the world’s top crude importer.

Markets also continued to grapple with tightening financial conditions and mounting risks of a global recession.

While Steel sector rebar futures rose past the CNY 3,550 mark, extending the rebound from the 2-1/2-year low of CNY 3,464 hit on October 31st as Chinese production curbs for the winter due to pollution controls are set to lower supply. Still, recession concerns continue to pressure demand for steel and other base metals, limiting the rebound in prices.