WTI crude futures fell after yesterday’s sharp decline. Amidst worries about a recession
At 7:07 pm Thai time, the West Texas Crude Oil Contract (WTI) is due for delivery in January. which traded on the NYMEX plus $ 0.05, or 0.07%, to $ 74.30 / barrel. Brent crude gained $0.04, or 0.05%, to $79.39 a barrel.
Investors fear that the US Federal Reserve (Fed) will accelerate increases in interest rates to curb inflation pushing the economy into recession. and will affect the demand for oil
Jamie Dimon, chief executive officer of JPMorgan Chase, the largest bank in the United States. He warned that inflation could drag the US economy into recession next year.
In addition, Mr Dimon said the Fed’s tendency to raise interest rates to a maximum of 5% may not be enough to prevent inflation.
Standard Chartered Bank released a report expecting Brent crude prices to plunge from the current around $79/barrel to around $40/barrel next year. This is the lowest level since the start of COVID-19.
He released Mr. Eric Robertson, chief global researcher at Standard Chartered, a report named “Financial market surprises 2023” or “Financial market surprises 2023”, outlines a number of events that could happen in the next year. which the market has ignored
One of the events in the report is a fall in oil prices. after rising in the first half of this year driven by tight market conditions and the Russian military invasion of the Ukraine
However, oil prices have been volatile in the second half of the year, plunging 35% between June 14 and November 28, despite the Organization of the Petroleum Exporting Countries (OPEC) and its allies (OPECPlus) announcing cuts in production capacity Although China’s economy is expected to recover after the easing of previously strictly enforced measures to prevent the spread of COVID-19
Mr Robertson said that Mr The global economic recession is greater than expected next year. Including the slow recovery of the Chinese economy. It will lead to a sudden fall in demand for oil in many countries.
In addition, if the conflict between Russia and Ukraine is resolved through negotiations, leading to the end of the war. It will cause oil prices to plunge by around 50% in the first half of 2023, with Brent crude oil prices falling from the current around $79/barrel to just $40/barrel. This is the lowest level since the start of COVID-19.
Investors are keeping an eye on today’s US Energy Information Administration (EIA) crude stock figures.