Oil prices fell more than $1 on Tuesday amid concerns about a possible recession and ongoing China’s COVID-19 restrictions, despite the recovery in fuel demand and global supply expected to tighten with the US summer driving season.

Brent crude futures for July fell $1.34, or 1.2%, to $112.08 a barrel as of 0606 GMT. West Texas Intermediate (WTI) July crude futures fell $1.28, or 1.2%, to $109.01 a barrel.

Brent rose 0.7% on Monday, while WTI was almost flat.

At the annual Davos economic summit, threats to the global economy top the concerns of the world’s leading countries, while some point to the risk of a worldwide recession.

The Managing Director of the International Monetary Fund, Kristalina Georgieva, said that she does not expect a recession for major economies, but it is not right to ignore the recession.

While Shanghai, the commercial hub of China, aimed to normalize life as of June 1, with the coronavirus caseloads decreasing, the rise in new COVID-19 cases in Beijing raised concerns about the restrictions.

China’s COVID-19 quarantines are certainly playing an important role by weighing on the fuel and energy demand outlook, and rising positive cases in Beijing are worrying investors that the quarantines are expanding to another business hub outside Shanghai.

Losses were limited by limited supply and expectations for gasoline demand to remain high.

The United States is gearing up to enter its peak driving season, starting with Memorial Day weekend later this week.

Saudi Aramco CEO said in a statement that oil supply is a global problem and most companies are afraid to invest in the sector with green energy pressures, adding that it is not possible for them to expand production capacity faster than promised.