WTI crude oil prices fell to around $79 per barrel on Tuesday, breaking a recent winning streak as recession fears dominated market sentiment, with the World Economic Forum, World Bank and major US companies sounding the alarm about a potential slowdown this year.
A survey released at the Davos summit showed that two-thirds of private and public sector economists expected a global recession this year, with about 18% considering it “extremely likely,” as reported by Reuters.
The World Bank also warned that 2023’s growth outlook looks ripe for recession, while major US banks increased reserves amid a deteriorating economic outlook.
Meanwhile, an improving demand outlook in top crude importer China after reopening from Covid curbs and the country’s better-than-expected economic growth in the fourth quarter kept oil prices supported. Investors now look ahead to market outlook reports from OPEC on Tuesday, followed by the IEA on Wednesday
