Oil prices fell 2% on Tuesday, extending the nearly 2% decline from the previous session, as recession fears and an outbreak of Covid-19 cases in China raised concerns about global demand. .
World Bank President David Malpass and IMF Managing Director Kristalina Georgieva warned on Monday of a growing risk of global recession and said inflation remained a problem.
Brent was down $1.90, or 2%, to $94.29 a barrel, while U.S. crude (WTI) was down $1.78, or 2%, to $89.35.
“There is a growing pessimism in the markets right now,” said Craig Erlam of brokerage OANDA.
Fears of a further impact on demand in China also weighed on. Authorities have stepped up coronavirus testing in Shanghai and other major cities as infections rise again.
“From an economic perspective, it looks like China is throwing the baby out with the bathwater, continuing to restrict its population to minor cases,” said John Kilduff, partner at Again Capital LLC in New York.
Losses were limited, however, by a tight market and last week’s decision by the Organization of the Petroleum Exporting Countries (OPEC) and allies, including Russia, known as OPEC+, to cut their production target by 2 million barrels. per day.
Source: CNN Brasil
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