The first week of 2023 was pretty difficult for crude oil futures. This result was driven by very mild winter weather conditions in the Northern Hemisphere. Global growth concerns along with a mixed outlook for China also contributed to the demand decline.
Despite the lifting of most of the restrictions related to the pandemic, frequent cases of the disease across the country have affected the short-term demand outlook. Despite that, investors hope the removal of the requirements must have a positive impact on China's economy going forward.
Meanwhile, the IMF warned that a third of the global economy could be in recession in 2023.
Supply-side concerns are also seen in connection with imposing European sanctions on Russian oil. At the same time, OPEC reiterated its willingness to reduce further output. Short-term resistance was set on a 21-day move at $75.65 for WTI and $81.15 for Brent.