WTI crude oil prices fell below $80 per barrel on Tuesday as traders returned to their desks, with fears of a global economic slowdown and lower energy demand dominating sentiment at the start of the year.
IMF head Kristalina Georgiva warned that 2023 is going to be a tough year as the main engines of growth, namely the US, Europe and China, are all experiencing weakening activity. China’s swift reopening that could lead to global surge in infections and tougher worldwide restrictions also remain a major risk for markets, though it sparked hopes of a faster recovery in the world’s second largest economy.
On the supply side, investors are watching for further actions from Russia after it banned oil exports to foreign buyers that adopt the G7 price cap, as well as the prospect of further production cuts from OPEC+. The US oil benchmark gained about 7% in 2022, a year marked by extreme volatility due mainly to the Ukraine invasion, China’s Covid woes and aggressive rate hikes
