Oil prices continue to fall amid rising fears of a global economic downturn.
Comments by Federal Reserve Chairman Jerome Powell have added pressure as he stated that two more interest rate hikes are expected by the end of the year.
Current efforts to curb inflation have yet to bring results, which, in turn, suggests a more difficult situation than anticipated. However, bullish factors still exist which is limiting oil losses. The oil market continues to be torn between favorable fundamental indicators and uncertain macroeconomic forecasts. Recession fears have become stronger after interest rate hikes by central banks and the hawkish policy of the Fed. Everyone is also hoping for a recovery in Chinese demand, which has been increasing throughout the year. Unlike China, in the United States, fuel demand has reached its highest level since December, and demand for aviation fuel has also risen, which is also good news for oil markets.
