Oil Prices Tumbled Sharply Owing to Global Economic Outlook

Amid growing concerns over the global economic outlook, the price of oil declined sharply on Tuesday.

The West Texas Intermediate for February delivery dropped US$3.33 or 4.15%, to settle at US$76.93 a barrel on the New York Mercantile Exchange.

Brent crude for March delivery lost US$3.81, or 4.43%, to settle at US$82.1 a barrel on the London ICE Futures Exchange.

As traders fear for gloomy demand prospects with the global economy slows, the prices of oil headed south.

Managing director of the International Monetary Fund, Kristalina Georgieva, had warned that 2023 will be “tougher” than last year, noting one third of the world economy could enter recession territory.

Another factor putting a weigh on oil was a surge in the US dollar. The price of oil is inversely related to the price of the US currency. The dollar index, which measures the greenback against six major peers, jumped 0.95% to 104.5070 in late trading on Tuesday.

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