Brent falls as recession fears trump supply concerns

The oil market looked away from renewed supply disruptions due to a Norwegian strike that threatens to exacerbate an energy crisis in Europe. Brent prices moved lower as concerns of a recession lingered. A firm dollar weighed on bullion.

Shreyansi Singh

Updated Jul 5, 2022, 15:54 IST

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KEY HIGHLIGHTS

Strikes in Norway threaten country’s flows this week
European shares slip as strike in Norway fuels fears of energy crisis
Inflation at 24-yr high adds to strains in South Korea's economy

New Delhi: Brent oil prices edged lower on Tuesday, after gaining earlier in the session as worries of the global economy tipping into a recession and its likely impact on fuel demand offset renewed supply disruption fears. Norwegian workers began a strike today that will curtail oil and gas output and will escalate further from July 9.

This comes at the heels of persisting supply disruptions due to a political crisis in Libya and Ecuador.

South Korea’s June inflation climbed to a 24-year high, signaling mounting strains on the open, trade-dependent economy and bolstering expectations of a big rate hike by the central bank.

Australia’s central bank joined the list of banks that have raised interest rate as they hiked rates for a third consecutive month.

Central banks across the world are scrambling to cushion an ailing economy with weak economic data from across the world raising bets for more rate hikes. Investors are also keeping an eye on the Federal Reserve’s minutes of the June 14-15 meeting due later this week.

Gold eases as dollar emerges as safe-haven of choice

Gold prices eased in a tight range as a stronger dollar and unavoidable rate hikes offset safe-haven support for bullion. The dollar was firm and hovered near two-decade peaks, making gold more expensive for buyers holding other currencies.

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