Oil prices retreat on US recession fears, slow growth in China

By Zeynep Beyza Kilic

ANKARA (AA) – Oil prices slightly dropped on Monday underpinned by tentative economic growth in China and potential recession in the US.

International benchmark Brent crude traded at $87.51 per barrel at 9.54 a.m. local time (0654GMT), down 0.14% from the closing price of $87.63 a barrel in the previous trading session.

The American benchmark West Texas Intermediate (WTI) traded at $81.56 per barrel at the same time, a 0.10% drop after the previous session closed at $81.64 a barrel.

Major Asian markets including China are closed for the Lunar New Year holiday which is expected to affect demand this week.

However, the oil sector remains optimistic about an increase in demand in China as the country opted to end COVID-19 restrictions last month and reopened its borders for travel.

Markets are awaiting US fourth quarter gross domestic product data due later in the week, which will reveal likelihood of a recession in the world's largest economy.

Experts voice concerns that a potential recession in the US could offset demand growth from Asia.