Oil closes 3% lower amid recession concerns, Brent below $83

Oil turned sharply lower today, Dec. 5, amid demand concerns and loss of risk appetite.

Investors preferred to stay away from risky assets, amid increasing speculation about the continuation of the US interest rate hike policy, following data that showed the rise in service sector activity in the United States, contrary to expectations.

Oil prices jumped more than 3% earlier in the day as China announced the easing of restrictions related to COVID-19 in a number of major cities.

Meanwhile, the European Union and the Group of Seven enforced their decision to impose a ceiling on Russian oil at $60 a barrel, while also banning most seaborne imports.

On Dec. 4, the OPEC+ alliance announced that oil production would remain unchanged at current levels.

In terms of trading, Brent crude futures contracts for February delivery fell 3.4%, or $2.89, to $82.68 a barrel, easing from $88.44 reached earlier in the trading.

WTI crude for January delivery slumped 3.8%, or $3.05, to $76.93 a barrel.