Recessionary fears on account of China’s lockdown and geo-political tensions had brought oil prices down 1%.
Heightened fears of a further interest rate hike and prolonged covid-19 lockdowns have also impacted the market.
Oil prices are under pressure this week, along with global financial markets, on jitters over rising interest rates, the strongest U.S. dollar in two decades.
Concerns on prolonged COVID-19 lockdowns in the world’s top crude importer China have also impacted the market.
U.S. headline CPI for the 12 months to April jumped 8.3%, reaffirming concerns that interest rates will need to rise quickly to tame it. r
However, supply concerns stemming from Russia’s invasion of Ukraine have bolstered the market, with prices rising over 35% so far this year. A pending European Union bans on oil from Russia, a key EU supplier of crude and fuels, that could further tighten global supplies is underpinning prices.
