Crude oil price drops to $89 per barrel as recession looms

China’s northeastern port of Dalian, southern tech hub of Shenzhen and southwestern Chengdu are some of the cities experiencing fresh outbreaks and facing strict lockdown measures. This could lead to the country’s economic activity to take a slump again. China is the world’s largest oil importer.

Meanwhile, European Central Bank is contemplating a rate hike of 75bps to control inflation, while the Federal Reserve System of the US will also keep borrowing costs restrictive in the near future, according to global media reports.

Additionally, oil supply from OPEC has not been affected despite unrest in member countries like Iraq and Libya.

ALCHEMPro News Desk (KD)