14 Jun 2022
Oil Prices rise amid Recession worries and COVID-19 curbs in China
The Index Today
Oil prices rises on Tuesday amid the tight global supply and worries that fueled demand could hit by a possible recession and recent fresh COVID-19 curbs in China. Recent data shows that the Brent crude futures rose 94 cents, or 0.9%, to $123.21 a barrel at 1029 GMT, while U.S. West Texas Intermediate (WTI) crude rose 79 cents, or 0.7% to $121.72 a barrel.
Jeffrey Halley, senior market analyst at OANDA said in a note, "The continuing squeeze on refined products globally, as well as a lack of investment to bring online more supplies from OPEC members, or other sources, means lost Russian production is nowhere near being covered by global markets."
The UBS (Investment banking company) said, "Low oil inventories, dwindling spare capacity, and the risk of supply growth lagging demand growth over the coming months have prompted us to raise our oil price forecast."
Ratings agency Fitch raised its Brent and WTI price assumptions for 2022 by $5 to $105 and $100 a barrel, respectively.