Brent Crude: futures fell more than 1% to below $107 per barrel on Thursday, giving back some gains after rallying 5% in the previous session, as economic uncertainties and recession fears outweighed supply concerns and geopolitical tensions in Europe.
Oil and other riskier assets have come under constant pressure this week amid worries that aggressive interest rate hikes to rein in surging inflation would weigh on global demand and could lead to a possible recession.
Prolonged Covid lockdowns in the world’s top crude importer China also impacted the markets.
Meanwhile, the EU is still haggling over the details of a Russian oil embargo, with Hungary strongly opposing the proposed ban.
Oil prices jumped on Wednesday after Russia sanctioned 31 companies based in countries that imposed sanctions on Moscow.
The move created unease in the market at a time when Russian natural gas flows to Europe via Ukraine fell by a quarter