Oil slips as recession fears balance tight supply

Oil edged lower on Monday as fears of a global recession that would hit demand overshadowed concerns of tight supply amid lower OPEC output, unrest in Libya and sanctions on Russia, according to Reuters. Despite concern of a recession, tight supply is limiting losses, Reuters reported. Ecuador’s production has been hit by unrest recently, and a strike in Norway could cut supply this week. “This backdrop of mounting supply outages is colliding with a possible spare production capacity shortage among Middle Eastern oil producers,” said Stephen Brennock of oil broker PVM. “And without new oil production hitting markets soon, prices will be forced higher.”