Oil edged lower on Wednesday after slumping in the previous session, weighed down by concerns about weak demand due to the state of the global economy and China's rising COVID cases.
Brent futures for March delivery fell 43 cents to $81.67 a barrel, a 0.5% loss, by 0700 GMT. U.S. crude dropped 39 cents, or 0.5%, to $76.54 per barrel.
"Warning signs of global recession, China's lacklustre recovery with surging COVID-19 cases, renewed strength in the U.S. dollar and dampened risk sentiment are all catalysts keeping oil prices in check overnight," said Yeap Jun Rong, Market Analyst at IG, in a note. The head of the International Monetary Fund warned that much of the global economy would see a tough year in 2023 as the main engines of global growth - the United States, Europe and China - were all experience weakening activity.The Fed also raised interest rates by 50 basis points in December after four consecutive increases of 75 bps each. If the Fed intensifies its rate hikes, that could slow the economy and hamper fuel consumption.
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