As the market anticipated a possible U.S. recession in 2023, crude oil futures dropped below $80 a barrel on Wednesday morning. On the Multi Commodity Exchange (MCX), December crude oil futures were trading at $6,177 in the first hour of trading on Wednesday morning, up from the previous close of $6,153 by 0.39 percent, and January futures were trading at $6,252 against the previous close of $6,220, up from the previous close by 0.51 percent.
High inflation will affect consumer purchasing, according to reports citing US bankers, and might cause a recession in the U.S. economy in 2023. Recent employment and service sector numbers in the U.S. were strong. Market participants fear that these figures could prompt the U.S. Federal Reserve to tighten monetary policy even further.
The G7 nations’ price cap on the purchase of Russian crude oil went into effect on December 5 as previously announced. According to market sources citing Russian media, Russia is also exploring alternatives like a restriction on oil sales to nations that support the price cap and the establishment of a maximum discount at which Russia may sell petroleum to offset the cap.