Oil declines at 2023 open
Recession fears are rising
The OPEC meeting became the focus
Crude oil got off to a poor start at the start of 2023 trading weighed down by the International Monetary Fund's (IMF) gloomy outlook on the global economy.
Although this is not the first warning from the IMF but it is enough to unsettle the market which is expecting an increase in demand from China which is now reopening from the Covid-19 restrictions.
Most recently, IMF chief Kristalina Georgieva voiced concerns about the three main drivers of global growth; The United States, Europe and China are experiencing slow economic activity.
Georgieva said China will have a difficult start to 2023, compounded by the latest surge in Covid-19 following a hasty reopening that has prompted most countries to implement tighter restrictions.
The statement on Sunday led to a gloomy opening for crude on the first day of 2023 trading, with US WTI futures trading down $79 a barrel.
Meanwhile, Brent oil futures traded lower at $85 a barrel as the market's focus now turned to the OPEC meeting scheduled to take place today.
Both benchmarks ended 2022 trading better, with Brent trading up 7% while US WTI rose 10%, driven by the Russia-Ukraine war.
