Most central banks worldwide have been hiking interest rates to bring inflation under control, enhancing the odds of a global recession. According to the IMF, one-third of the global economy is poised to contract this year or next.
However, any concerns regarding a slowdown in the energy demand seem to have been offset by supply-side constraints caused by the fallout of the conflict between Russia and Ukraine. The situation has also been aggravated by OPEC+’s decision to cut oil production by 2 million barrels/day, despite being urged by the U.S. administration to reconsider its stance.
