- Oil heads for a weekly decline amid fears of a global recession and weaker demand
- WTI is trading below $88/Bbl on Friday and is down more than 4% this week
- The IEA cut its oil demand forecast for this year and next on Thursday, warning of the possibility of a global recession
- China's "Covid-zero" policy continues to weigh on the market amid anticipation of weaker fuel demand
- China, the world's largest crude oil importer, reported more bearish economic data amid continued COVID-zero policies (BBG, Reuters)
- Although the nation has fewer cases compared to other countries, it follows a zero-COVID policy, which is negatively impacting economic growth and, in turn, oil demand
- Air travel during the first week of October's week-long holiday was down 42% from the same period last year, according to China Aviation Daily
- Road travel was down by 30% for the same period, according to China’s Ministry of Transport
- The lack of activity puts downward pressure on global oil prices as transportation makes up over half of China's oil consumption
- President Biden criticized U.S. fuel prices yet again and said he would announce new actions next week to address what he called a key driver of inflation (BBG)
- “The price of gas is still too high, and we need to keep working to bring it down,” said Biden at an event on Thursday
- His remarks follow a warning of "consequences" against Saudi Arabia for lowering crude production
- Additionally, National Security spokesman John Kirby said yesterday that “Other OPEC nations communicated to us privately that they also disagreed with the Saudi decision but felt coerced to support Saudi’s direction.”
- “The price of gas is still too high, and we need to keep working to bring it down,” said Biden at an event on Thursday