Brent futures dip below $80/bbl as nations tighten travel restrictions on China
Front-month ICE Brent has declined by $1.81/bbl on the day, to $78.55/bbl at 09.00 GMT.
PHOTO: Getty Images
Upward pressure:
ING has forecast a tightening of oil supply through 2023 as a result of Russia's crude output declining by 1.8 million b/d, and continued supply cuts from OPEC+. The investment bank projects Brent to average $104/bbl this year.
Wood Mackenzie has forecast a 2.3 million b/d rise in oil demand growth this year, driven by China's easing of Covid-19 restrictions and an uptick in petrochemical feedstock use.
Downward pressure:
The World Health Organisation has criticised China for "underrepresenting" the severity of its Covid-19 outbreak, and has urged greater transparency in fatality numbers, according to the Financial Times.
EU member nations have unanimously decided to impose restrictions on incoming Chinese travellers, and have set negative Covid-19 tests as a precondition for entry.
A US recession is the “most likely outcome” of the US Federal Reserve’s (Fed) aggressive interest rate hikes to curb inflation, according to Former Fed Chairman Alan Greenspan.
The International Monetary Fund's head Kristalina Georgieva has warned in a CBS interview that one-third of the world is likely to see a recession this year.
By Konica Bhatt
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