Commodity markets are characterized by a wait-and-see approach as traders await the ongoing G7 summit. Fears of an impending recession entailing lower demand lurk in the background, putting a damper on prices.

A barrel of European reference crude, Brent, costs USD 113.23 Monday morning against USD 113.75 Friday afternoon. Meanwhile, US counterpart, West Texas Intermediate, trades concurrently at USD 107.6 per barrel against USD 108.46 Friday.

All eyes are on the G7 summits where leaders are discussing, among other things, a price cap on Russian oil exports. According to Bloomberg News, this would entail a fixed maximum price that G7 nations would pay for Russian oil, thereby acting as a sanction against Russia.

However, nothing has been decided as yet, writes Bloomberg News.

Lurking in the background of the talks between powerful nations are fears of a coming recession, inasmuch as central banks raise interest rates in an effort to combat inflation.

This is putting a downward pressure on oil prices, which are set for an overall monthly decline.

Short supply buoys oil prices despite recession fears

IEA: Oil output will struggle to keep up with demand in 2023

Global recession concerns lower oil prices