While there are still plenty of supply risks that could send oil prices soaring, bearish sentiment has taken over oil markets since last week due to falling Chinese demand and the expectation of a global economic slowdown.
Prospects of weakening economic growth globally have continued to weigh on crude prices, with the US Fed hinting at a half-point interest rate increase at the next policy meeting in May and China’s COVID woes getting ever-more protracted amid Shanghai announcing another round of lockdowns. Upside risks are still on the table with the European Union mulling oil sanctions against Russia and Libya on the brink of war, but for the time being bearish sentiment is pulling prices lower.
