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Oil prices fall as concerns about China’s demand spark recession fears

Oil prices dipped on Monday, after a five-day rally, as investors focused on slowing economic activity in China, the world’s largest oil importer, raising concerns about a worldwide recession and falling global fuel consumption.

Brent crude futures for December delivery fell as much as 1.1% and were down 40 cents, or 0.4%, at $97.52 per barrel at 12:40 GMT.

West Texas Intermediate crude for November delivery fell as high as 1.1% to $92.29, a drop of 35 cents, or 0.4%.

According to data released on Saturday, services activity in China fell for the first time in four months in September as COVID-19 restrictions impacted demand and company confidence.

The slowdown in China, the world’s second-largest oil consumer after the United States, adds to mounting fears of a global recession caused by central banks hiking interest rates to combat soaring inflation.

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