While oil prices fell sharply by 4 percent on Tuesday due to demand concerns, it is seen that the problems continue on the new trading day.
U.S. crude fell 4% on Tuesday and settled below $77. Brent oil is also below $82.
Above-average temperatures in the U.S. and Europe eased fears of an energy crisis predicted to trigger blackouts. Diesel futures fell, and natural gas dropped to an 11-month low.
Prices rose after Russia invaded Ukraine but lost ground amid growing global recession concerns. In the new year, investors are watching Russia’s reaction to energy sanctions and the rapid divergence of Zero-Covid in China.
There are also questions about whether the Organization of the Petroleum Exporting Countries and its allies will cut supply again.
Despite the losses, there are signs that market players are more optimistic about the market’s direction. Last week, money managers increased their net bullish forecasts on the Brent side to the highest since July 2021. Hedge Fund Trader Pierre Andurand was among those who predicted an increase in oil demand if the world ultimately comes out of the Covid restrictions.
