Oil prices stable: oil supply worries offset recession fears

Oil prices hold steady as supply cut fears are offset by fears of an economic downturn and China’s strict COVID-19 containment strategy. 

According to analysts at ANZ Research, the near-term oil market fundamentals remain optimistic. The main focus is on oil supply.

In addition to this, analysts say that the oil market is now in anticipation of EU sanctions. The EU’s ban on seaborne crude oil imports from Russia enters into force on December 5. It will be followed by a ban on the imports of Russian refined oil products in February.

As reported by CMC Markets analyst Tina Teng, market participants will be paying close attention to U.S. consumer price index data this week to find trading signals. If inflation remains high, the Fed may shift more hawkish and recession fears will rise. 

A preliminary Reuters poll revealed on Monday that crude inventories were expected to show a rise of about 1.1 million barrels last week.