• Ar
  • Es
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Feature
  • Videos
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Feature
Videos
Infographs
In Pictures
  1. Home
  2. News
  3. Asia Europe US & Canada
  4. Oil prices down almost 10% since start of 2023 over fears of recession
Asia

Oil prices down almost 10% since start of 2023 over fears of recession

  • By Al Mayadeen English
  • Source: Agencies
  • 5 Jan 00:37
  • 1 Shares

Amid concerns about a global recession and fears of the effects of the Covid situation in China, crude prices are down almost 10% since the beginning of the year.

  • Oil prices down almost 10% since 2023 start
    Oil prices down almost 10% since the start of 2023

Crude prices are down approximately 10% in just two days of trading since the beginning of 2023 after ending 2022 up nearly 7%, amid concerns about a global recession and the worsening Covid situation in China, the top oil importer.

"Oil prices have tumbled … [on] the uncertainty [in] near-term economic prospects for China amid surging COVID cases," said Ed Moya, an analyst at online trading platform OANDA.

"While reliable data is seemingly hard to come by, the view appears to be that there'll be significant disruption in the coming months."  

On Wednesday, the New York-traded West Texas Intermediate crude (WTI) settled trade down $4.09, or 5.3%, at $72.84 per barrel after hitting a three-week low of $72.77 during the session.

London-traded Brent crude settled down $4.26, or 5.2%, at $77.84 per barrel after dropping to a three-week low of $77.74 earlier on Wednesday.

Brent, the global crude benchmark, is down 9.4% from just two days of trading this year after ending 2022 up 10.5%.  

Since the new year started, fears about a global recession have intensified, pummeling crude prices as China faces increased challenges in containing the spread of coronavirus in the country.

Hundreds of millions of people in China are estimated to be at risk from Covid infections before herd immunity is achieved in the second largest economy in the world. Thus, the country's zeal to go from a zero-Covid policy to one where officials are currently exhorting the people to announce a "final victory" over the virus has sounded an alarm across markets.

Concerns over China’s actions have been highlighted after the International Monetary Fund (IMF) started the new year with a tough warning that the country as well as the United States and Europe were all in slowdown mode.

The manufacturing activity in China shrank for a fifth straight month in December, according to data on Tuesday, as the country struggled with an unprecedented rise in Covid cases.  

China has also raised export quotas for refined oil products in the new year's first batch, signaling expectations of poor domestic demand.  

According to media reports, adding to the market’s bearishness were signs that Saudi Arabia could further cut prices to Asia for its flagship Arab Light crude grade in February after the pricing for that hit a 10-month low this month, reflecting concerns of oversupply.

  • United States
  • Texas
  • New York
  • Europe
  • IMF
  • China
  • London
  • Oil prices
  • Saudi Arabia
  • Recession

Trending Now

All
Iranian Petroleum Minister Javad Owji

Iran-Russia annual trade to reach $40 billion in 1.5 years

Most Read

US dollar may lose status as global reserve currency: Yellen

US dollar may lose status as global reserve currency: Yellen

  • US & Canada
  • 22 Mar
Ukrainian President Volodymyr Zelensky speaks at a press conference on 25, February, 2022. (AFP)

Kiev unable to launch counteroffensive: Zelensky

  • Europe
  • 25 Mar
Europe's move has only increased Putin’s esteem outside the West -- but estimation of Europe’s political nous and understanding of Russia, however, is sharply diminished.

Lawfare Comes into Fashion: The New Geo-political ‘Rack’

  • Analysis
  • 25 Mar
Crewmen enter Bradley fighting vehicles at a US military base at an undisclosed location in Northeastern Syria, on November 11, 2019 (AP)

US occupation bases under fire in Syria for second day in a row

  • MENA
  • 24 Mar

Read this

All
Khader Adnan
Palestine

Khader Adnan's health condition deteriorating rapidly: Prisoners Club

  • 26 Mar
French police crackdown leaves protester's life hanging by a thread
Europe

Sainte-Soline police violence leaves protester life hanging by thread

  • 26 Mar
Demonstrators gather outside Downing Street during a Black Lives Matter march in London, on June 6, 2020.
Europe

Black children more likely to be strip-searched in England, Wales

  • Today
Elon Musk's photo is seen through a Twitter logo in this illustration taken October 28, 2022. (Reuters)
Technology

Twitter worth less than half of what I paid for it: Elon Musk memo

  • 26 Mar
Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS