Policymakers have been begging for a break in Oil and gas prices and the last week finally started to see the turning point. While demand is beginning to soften, which no doubt will help loosen the tight oil market, a surge in Libyan crude output pushed futures lower. Adding to that are the overwhelming signs that oil prices will also fall if the global economy takes a step back. Markets are preparing for recessions in the U.S. and the Euro area. Central bankers across the globe are committed to subduing rampant inflation and as much as a 1% hike in the Federal Funds rate could happen at the next Fed meeting. A recession would significantly reduce U.S. oil demand.

Finsum: There is still plenty of pressure on Oil prices with the War on Ukraine continuing, and supply bottlenecks are still the driving force.