Oil closes 2% lower amid demand concerns

Oil drilling rigs

Oil prices closed lower today, Jan. 24, as concerns returned about economic recession and its impact on demand.

Prices had edged up over the past two weeks, supported by optimism regarding demand prospects from China as the country eased lockdown restrictions.

However, crude came under pressure after the disappointing financial results from several US companies, which raised concerns about the outlook for the economic situation.

Latest data showed that the economic activity of the private sector in the United States continued to contract during January, although it rose slightly compared to December.

Meanwhile, Bloomberg reported that OPEC+ delegates expect the advisory committee to recommend keeping current oil production levels unchanged during its meeting next week.

Brent crude slumped 2.3%, or $2.06, to close at $ 86.13 a barrel.

WTI crude fell 1.8%, or $1.49, to $80.13 a barrel.