Oil prices remained flat on Monday, attempting to recoup losses from the previous week as the market weighed tighter supply against fears about slowing global economic growth.

By 1022 GMT, Brent oil futures were down 38 cents, or 0.3 percent, to $112.74 per barrel. Front-month prices fell 7.3 percent last week, the first weekly drop in five weeks.

West Texas Intermediate oil in the United States was trading at $109.38 per barrel, down 18 cents, or 0.2 percent. Last week, front-month prices fell 9.2 percent, the first dip in eight weeks.

“Friday’s steep price fall can be seen as a delayed reaction to the concerns about recession that have already been weighing on the prices of other commodities for some time,” said Commerzbank analyst Carsten Fritsch.

Analysts and investors feel a recession is more probable now that the United States Federal Reserve has authorized the greatest interest rate rise in more than a quarter-century to combat inflation.

Last week, the Bank of England and the Swiss National Bank took similar tightening measures. more info

Brent oil futures fell to their lowest level in a month on Monday, although some experts believe the drop will be temporary.

“Supplies will remain tight and continue supporting high oil prices. The norm for ICE Brent is still around the $120/bbl mark,” PVM analyst Stephen Brennock said.

Western sanctions have limited Russia’s access to oil after its invasion of Ukraine, which Russia describes as a “special operation”

While China’s crude oil imports from Russia increased by 55 percent year on year in May, replacing Saudi Arabia as the country’s main supplier, the country’s export restrictions have resulted in decreased oil product exports.

Oil prices have been sustained by tight markets for refined goods. more info

Analysts predict that the Organization of Petroleum Exporting Countries (OPEC) and its partners, known as OPEC+, will raise prices just little this summer.

Following blockades by factions in the country’s east, Libya’s oil production has remained erratic, with output recently measured at 700,000 barrels per day. more info

And the chances of Iran’s sanctions being lifted, which might result in a significant rise in the country’s petroleum exports, are fading. more info

Tight supply has been alleviated in part by the release of strategic petroleum reserves, headed by the United States, where output is also increasing, according to Baker Hughes Co rig count statistics.

Source: Reuters

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