Amid fears of a global recession, crude oil prices have been volatile. After a steep fall of over 9 percent this week, oil prices rose by $1 on Friday. Prices edged up for a second session on the back of China's reopening.
China, the world's largest crude oil importer, made an abrupt turn in its stringent zero-COVID policy in early December following rare public protests, leading to a surge in infections across the country.
However, multiple factors including the covid cases surge in China and global recession concerns are triggering demand concerns, leading to fluctuations in oil prices.
Meanwhile, data showed lower U.S. fuel inventories following a winter storm that hit at the end of the year. The world’s top crude exporter Saudi Arabia lowered prices for the flagship Arab light crude it sells to Asia to its lowest since November 2021 amid global pressures hitting oil.
India imports 80% of its crude oil needs. As a result, a decline in prices benefits the economy, since it means less foreign currency is needed to purchase crude oil.