Oil Extends Losses On Recession Fears

Oil extended last week’s losses on Monday, as concerns about a likely global recession coupled with concerns of surging COVID cases in China overshadowed news of supply disruptions.

Benchmark Brent crude futures dropped 0.9 percent to $75.43 a barrel in volatile trade, while WTI crude futures were down 0.8 percent at $70.44.

A growing number of economists and CEOs predict that the U.S. will enter a recession in 2023.

While noting the continued risk of a recession, U.S. Treasury Secretary Janet Yellen on Sunday said inflation will be much lower by the end of 2023.

Meanwhile, China is facing a surge in virus 19 cases after partially easing aspects of its so-called zero-COVID policy.

A top government health adviser warned that the epidemic in China is spreading rapidly and that it will be difficult to completely cut off the transmission chain
On the supply slide, a pipeline that connects oil fields in Canada with refiners in the United States remans shut.

Russian President Vladimir Putin has threatened to cut oil production in response to the G7’s price cap on Moscow’s crude exports.