OTTAWA (dpa-AFX) - Crude oil prices fell on Tuesday amid concerns about the outlook for energy demand due to rising fears of a recession.
A report from the International Monetary Fund says about one third of the world economy will likely go into a recession this year.
Traders also reacted to comments from New York Fed President William Dudley who said a U.S. economic downturn is likely.
A stronger dollar weighed as well on oil prices.
West Texas Intermediate Crude oil futures for February ended down $3.33 or about 4.2% at $76.93 a barrel, a two-week low.
Brent crude futures dropped $3.81 or about 4.4% to $82.10 a barrel.
Data showing a drop in Chinese manufacturing activity weighed as well on oil prices. According to a survey, China's factory activity deteriorated further at the end of the year as Covid-1 containment measures together with softer demand forces manufacturers to downsize production.
The Caixin manufacturing Purchasing Managers' Index edged down to 49.0 in December from 49.4 in the previous month, remaining below the neutral 50.0 mark for the fifth successive month.
The official PMI survey results published over the weekend also showed that China's manufacturing and services sectors weakened the most since early 2020.
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