Home Industry Energy Oil heads for worst run of losses this year on recession concern Oil fell about 8 per cent in June as investors fretted over a potential global slowdown by Bloomberg July 1, 2022 Oil headed for a third weekly drop, its longest losing run this year, on concern that a potential recession will cut into energy demand. West Texas Intermediate edged above $106 a barrel after tumbling on Thursday as commodities were pummelled. The US benchmark has shed about 1 per cent this week despite signs that the physical crude market remains very tight. Data this week showed weakness in US consumer spending, which is by far the biggest contributor to gross domestic product. That follows a pivot by the Federal Reserve earlier this year to aggressively tighten monetary policy to quell raging inflation. Oil fell about 8 per cent in June as investors fretted over a potential global slowdown, eroding a rally spurred by the crisis in Ukraine, interruptions to supplies and rising demand. The jump in prices alarmed President Joe Biden, who’s spearheading efforts to get producers in the Middle East to boost crude output. The Organization of Petroleum Exporting Countries and its allies ratified an oil-production increase this week, completing the return of supplies halted during the pandemic. In a sign that US demand remains robust for now a record number of drivers are expected to hit the road this weekend for Independence Day travel. Average retail gasoline prices have eased slightly in recent weeks after hitting a record above $5 a gallon in June. Oil’s time spreads, which traders track for indications on the strength of demand, continue to flash positive signals. Brent’s prompt spread – the difference between its two nearest contracts – was $3.48 a barrel in backwardation, up from $2.73 a month ago. Tags Drivers middle east oil Producers recession 0 Comments You might also like Oil jumps over 2% amid further Red Sea vessel attacks Oil eased ahead of Christmas break on possible future Angola output increase Has UK economy entered a recession? Q3 data suggest so Global airlines poised for 2.7% jump in profit in 2024, says IATA