Crude oil fell as recession and demand concerns prevailed

Oct.
11 News: On Tuesday (Oct.
11), crude oil futures fell about 2%, extending a weak trend of nearly 2% on Monday, as recession prospects and concerns
about slowing fuel demand caused by the epidemic in China.

By the close, the most actively traded West Texas Intermediate (WTI) November contract on the New York Mercantile Exchange (NYMEX) closed at $89.
35 a barrel, down $1.
789 or 2 percent
from the previous session.

The global benchmark Brent crude oil futures for December settled at $94.
29 a barrel, down $1.
90 or 2 percent
.

On Monday, World Bank President David Malpass and International Monetary Fund Managing Director Kristalina Georgieva warned of the growing risk of a global recession and said inflation
persisted.
These comments further weighed on market sentiment and pessimism
intensified.

China's fuel demand, which could be adversely affected by the pandemic, also weighed on
oil prices.
As the rate of new crown infection in some regions rises again, several large cities have stepped up nucleic acid testing
.

But a likely tighter global crude supply later this year continues to support
oil prices.
Last week's OPEC alliance's decision to lower its output target by 2 million b/d helped provide bottom-line support
for oil prices.

A report from Commerzbank said there will even be a shortage of supply next year, since according to the OPEC alliance's decision, production cuts should be applied until the end of
2023.

White House national security spokesman John Kirby said on Tuesday that U.
S.
President Joe Biden was reassessing U.
S.
relations with
Saudi Arabia after the OPEC alliance announced production cuts last week.

The American Petroleum Institute (API) will release inventory data
after hours on Tuesday.
A survey showed analysts expected U.
S.
crude inventories to likely grow
last week.
It has been declining
for two consecutive weeks.

WTI crude is up 12.
40% so far this month, 18.
80% year-to-date, and Tuesday's closing price is up 10.
80%
year-on-year.

Brent crude is up 7.
20% year-to-date, 21.
23% year-to-date, and Tuesday's closing price is up 13.
03%
year-on-year.

In contrast, WTI crude rose 55.
5% in 2021, the biggest annual increase since 2009
.
Brent crude rose 50.
5 percent, its biggest gain since 2016, largely due to strong demand and limited
supply growth.