The slowdown in the global economy, expectations of higher interest rates by central banks and a rise in coronavirus cases in China affected investor sentiment.
The global cost of crude oil remained flat on Tuesday, having recovered to a seven-month low in the last session.
According to experts, concerns about a global slowdown, higher central bank interest rates and a rise in Covid-19 cases in China have weighed on investor sentiment.
According to Rahul Kalantari (Mehta Equity), predictions of a slowdown in the international economy, which could undermine demand, have continued to pressure oil prices, mainly due to the strong monetary tightening of major central banks and China’s epidemic borders.
He said the G7 is trying to get more countries to participate in its attempts to limit Moscow’s energy gains by capping the cost of Russian oil; The program is expected to start in December, when European sanctions will take effect.
He expected crude oil prices to remain unpredictable during today’s session.
Brent crude futures closed up 1.3% on Monday at $94 a barrel, while West Texas Intermediate crude was up 1.1% at $87.78 a barrel.
According to the latest data released by the US Department of Energy (DOE) on Monday, the country’s emergency oil supply fell from 8.4 million barrels to 434.1 million barrels on September 9.
According to experts, supply concerns will continue to support prices.