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Crude oil futures end deeply in red on recession fears

04 Jan 2023 Evaluate

Crude oil futures ended deeply in red on Tuesday as growing concerns over a global recession and worries that surging COVID-19 cases in China will crimp demand. The fall for oil prices came as recession fears mount, with the International Monetary Fund expecting one-third of the world economy to enter a recession, while New York Fed President William Dudley says a US economic downturn is likely. Besides, data showing a drop in Chinese manufacturing activity also weighed on oil prices. According to a survey, China's factory activity deteriorated further at the end of the year as Covid containment measures together with softer demand forces manufacturers to downsize production.

Benchmark crude oil futures for February delivery fell $3.33 or 4.2 percent at $76.93 a barrel on the New York Mercantile Exchange. Brent crude for March delivery dropped $3.81 or 4.4 percent at $82.10 a barrel on London's Intercontinental Exchange.

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