By Gina Lee

Investing.com – Oil was down on Tuesday morning in Asia as investors’ concerns about a possible recession and weaker consumption grew.

The price dropped 0.44% to $110.29 at 11:38PM ET (3:39 PM GMT) and was down 0.4% to $109.84.

The possibility of a recession is causing concern for investors. Some of the world’s well-heeled flagged the risk of a worldwide recession at the annual Davos economic summit which began on May 22.

International Monetary Fund’s Managing Director stated that while she does not anticipate a recession in major economies, it is impossible to rule out one.

“Investors were selling off as they expected higher oil prices to dent consumption for fuels worldwide,” Fujitomi Securities Co. Ltd. analyst Toshitaka Tazawa told Reuters.

“But lingering concerns over tight global supply and hopes for demand recovery in China were providing some support,” he said, predicting Brent oil futures stay within a range of $105-$115 a barrel for a while.

China, the world’s largest oil importer, promises stimulus such as rolling out new investment projects. To offset the severe effects of business lockdowns, China will provide additional tax relief in excess of 140 billion Yuan (21 billion dollars).

Shanghai hopes to restore normalcy in the city starting June 1, as the COVID-19 number of infectious diseases decreases.

Meanwhile, the European Union is likely to agree on an embargo on Russian oil imports “within days”, according to Germany, the biggest member.

Investors await U.S. crude oils supply data from, expected later in the morning.