Markets are now beset by growing concerns that the prospect of a global recession will weaken oil demand, causing black commodity trading to open lower at the start of the Asian session.
The continued closure of Covid-19 in China and an interest rate hike by the United States have caused markets to worry that it will hurt the Asian giant’s economy thus impacting demand.
However, at the same time, oil prices are also supported by the European Union's (EU) plan to implement sanctions on Russian oil, which will certainly put more pressure on world supplies.
This pushed oil trading to remain stable in the Asian trading session, where Brent oil futures traded at around $ 112 a barrel and US WTI at $ 109 a barrel.
The proposal, however, met with opposition from several EU countries such as Hungary and Bulgaria. On Sunday, Bulgaria said it would seek an exemption from the plan if allowed.
Discussions on the proposal are reported to continue this week, which is sure to cause ‘turmoil’ in the energy and crude oil markets.
