Oil Prices Lower As Growth Concerns Back In The Forefront

MNI (Australia) - Oil prices are slightly lower today with WTI down 0.4% on Friday’s NY close to just under $80/bbl, slightly below its 50-day simple moving average. It reached an intraday high of $80.78 and a low of $79.32. Brent is down 0.5% to about $85.50 after a high of $85.96.

• The IMF’s warning that a third of the global economy could go into recession this year fuelled the oil market’s growth fears. It noted that America, the EU and China are “slowing simultaneously”. Demand expectations are also being impacted by the spread of Covid through China and the introduction of some travel restrictions in other countries.
• On the supply-side analysts are watching to see the extent of the impact of sanctions on Russian crude and its reaction. There is also concern that OPEC+ will cut output further as the global economy slows.
• Later today the final December US manufacturing PMI prints. There is further PMI/ISM data over the week but the focus is on Wednesday’s FOMC minutes and Friday’s payroll data for December, which is expected to post a 200k gain (bbg).