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s geopolitical concerns eased, oil investors shifted their views back to the demand outlook, and oil fell, extending its losses.
West Texas Intermediate fell to nearly $84 per barrel, after dropping 1.5% Wednesday.
Affecting investor sentiment was a JPMorgan Chase projection showing the US will enter a “mild” recession next year produced by the interest rate hikes of the Federal Reserve, as well as a rising number of Covid cases in China, which are increasing the likelihood of a lockdown. Earlier in the week OPEC cut its demand forecast.
There was a brief fear that a missile which struck Poland and killed two people had been launched by Russia, which could have formed the basis for an Article V expansion of the war, bringing in NATO forces in a direct clash with Russia. However subsequent analysis showed that despite Ukraine’s denials, the missile appeared to have been Ukrainian. After a short power outage, the Druzhba oil pipeline which carries oil to the West was restarted, as the possibility of a greater expansion of the war abated.