Oil Prices Slip Below $100/bbl Amid A Host Of Factors

Oil prices slipped in trade today below the key $100 per barrel as a number of factors are weighing upon. First of all fresh and elevated worries around Covid and hence mobility curbs in China are weighing as China is the major user of the commodity. With it there is seen a demand destruction for the commodity and hence prices are pushed lower.

Currently as the recessionary fears take over supply concerns, traders in the oil market are reportedly selling oil again.

On the other hand, dollar firmness is continuing to weigh too which on escalating economic worries is making new highs each day.

Nevertheless, as experts anticipate upside risk in the market is also plentiful and volatility is here to stay.

In the past one month, brent pries have come down by $20, while for the WTI benchmark, the loss has been nearly $25 per barrel as per the report and the biggest driver for the losses is the recessionary threat. This is even as the demand is seen to be firm regardless of the prices.

There are multiplying forecasts of the US economy confronting recession by early 2023. And the likelihood for the same as per the recent TD Securities' is more than 50%.