Crude oil closes in the red as concerns about a recession impact oil demand

Crude oil futures closed lower on Monday (Oct. 10) as markets were hit by concerns about a slowdown in China’s economy, including the global economy.

  • WTI crude futures were down $1.51, or 1.6%, at $91.13 a barrel.
  • BRENT crude futures fell $1.73, or 1.8%, at $96.19 a barrel.

The latest Caixin survey showed that China’s services purchasing managers’ index (PMI) fell to 49.3 in September from 55.0 in August, reflecting COVID-19 control measures.

A PMI below 50 indicates a contraction in the service sector. And this is the first time in four months that the Chinese service sector has contracted.

The slowdown in China, the world’s second-largest oil consumer after the U.S., has stoked concerns about a global recession after central banks around the world were pressured to raise interest rates to curb inflation.

Oil markets were also negatively impacted by Federal Reserve officials, including Chicago Fed Chairman Charles Evans. He still supports the Fed in continuing to raise interest rates, even if this hurts the economy.

JPMorgan Chase Chief Executive Jamie Dimon has warned that the U.S. and global economies could enter a recession in the middle of next year. It will be influenced by many factors. These include rising interest rates and the ongoing war in Ukraine.

The Spot Market is Open

Tuesday, October 11, 2022

Energy
Updated at
USD
Price

Change

%Change
Crude Oil
09.30

90.85

-0.27

-0.30%

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