WTI crude oil traded near $74 per barrel on Wednesday after falling for three straight sessions, remaining under pressure as economic warnings from major US banks weighed on the demand outlook and hurt risk assets.
The US oil benchmark is hovering near its lowest levels in almost a year as top US bankers sounded the alarm over a possible slowdown, with JPMorgan Chase CEO Jamie Dimon saying that persistently high inflation will dent consumer spending and most likely drag the world’s largest economy into a recession next year.
Investors also fretted about the prospect of higher interest rates as surprisingly strong US services and jobs data bolstered the case for further monetary tightening.
These factors have overshadowed market optimism stemming from easing Covid restrictions in top crude importer China. Meanwhile, markets continued to assess the implications of a US-led price cap on Russian oil, with Moscow reportedly considering a price floor for oil exports.
