Fears of a recession put pressure on oil, OPEC report is in focus

Oil prices remain stable in anticipation of economic data release this week. Markets intend to assess the potential of a recession before taking any actions. Besides that, investors are focused on oil demand forecasts from a number of major industry organizations.

First of all, markets await a monthly report from the Organization of Petroleum Exporting Countries (OPEC). Traders will monitor any changes in demand forecasts for the year. This report might be influenced by expectations of China’s economic recovery and fears of the global recession.

In addition, the International Energy Agency (IEA) will release its monthly report on Wednesday, January 18. Markets will similarly monitor the organization's report.

China’s economic recovery after Covid-19 restrictions might stimulate the rise in crude oil demand.

However, fears of the global recession have returned. The consequences of aggressive interest rate hikes are gradually becoming more tangible. A slowdown in economic growth could have a negative impact on oil demand, affecting China’s economic recovery as well.