Recession fears have dragged crude prices down $40 from their peak earlier this year. Reduced liquidity has made any price moves even more volatile. Trafigura’s Chief Economist thinks that the market is set for a supply crunch and oil price spikes in 2023. While traders and investors in the paper oil market are focused on looming recessions and interest rate hikes, those on the ground – executives at oil producers and commodity traders – warn of oil price spikes in the future as years of underinvestment have depleted capacity and the potential of new oil production to fill the growing supply gap. Recession Fears Drag Oil $40 A Barrel Down From Spring Peak Growing fears of imminent recessions in Europe and possibly in the United States have dominated the sentiment in the oil market over the past three months. Since June, when the Fed started aggressively hiking key funds […]