Oil prices amid recession fears

Oil prices inched higher this week as big producers hinted at capacity limits and an effort to cap Russian oil prices by western governments began. Meanwhile, the global economy is “teetering on the brink of recession”, according to the International Institute of Finance, as the war in Ukraine, the continuing Covid-19 lockdowns in China and a hawkish US Federal Reserve weigh on activity.

 

In an action-packed week in which the G7 summit is concluding while Opec+ prepares to meet and US President Joe Biden makes his way to Saudi Arabia, what impact will these events have on the outlook for 2022?

 

Joining hosts Mustafa Alrawi and Kelsey Warner, Ole Hansen, head of commodity strategy at Saxo Bank, explains how long he expects high oil prices to last and the forces most likely to affect energy markets this year. He also discusses the impact on the green transition and commodities prices amid a current food crisis.

 

In this episode:

 

The market right now (1m 2s)

Durability against recession (3m 40s)

Could there be a drop in demand? (7m 19s)

Would G7 cap prices? (9m 56s)

Biden's visit to Saudi Arabia (11m 44s)

The gas market (14m 28s)

Outlook for the rest of 2022 (17m 8s)

 

Read more on our website:

• Oil prices surge on tight supply but recession fears loom

• Uber and Lyft drivers opt for Teslas amid rising petrol prices

• Energy minister: UAE producing close to maximum oil capacity based on Opec+ baseline

• Energy demand and carbon emissions bounce back to pre-pandemic levels, BP report finds

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