Pipes at the landfall facilities of the "Nord Stream 2" gas pipeline are pictured in Lubmin, northern Germany, on Feb 15, 2022. (MICHAEL SOHN / FILE / AP)

SINGAPORE – Oil prices held in a narrow range on Tuesday and a warning from the head of the International Monetary Fund that the global economy faced a tough year ahead.

Brent crude futures recovered from their early weakness, when prices fell by $1 a barrel, rebounding to $86.29 a barrel by 0737 GMT, an increase of 38 cents, or 0.44 percent. US West Texas Intermediate crude was at $80.77 a barrel, up by 51 cents, or 0.64 percent.

"This is likely (to be a) volatility play," said head of APAC analysis at Vortexa Serena Huang.

Vandana Hari, founder of Vanda Insights in Singapore, said little had changed during the last weeks of December.

Further darkening the outlook, IMF Managing Director Kristalina Georgieva said on Sunday that the United States and Europe – the main engines of global growth – were all slowing simultaneously, making 2023 tougher than 2022 for the global economy.

ALSO READ: West's cap on Russian oil risks exacerbating Europe's energy woes

IMF Managing Director Kristalina Georgieva said on Sunday that the United States and Europe – the main engines of global growth – were all slowing simultaneously, making 2023 tougher than 2022 for the global economy

Oil prices had settled more than 2 percent higher on Friday, with Brent and WTI ending 2022 up 10.5 percent and 6.7 percent on a year before, respectively.

Societe Generale analysts said in a note dated Jan 3 that the week that ended on Dec 27 had seen the single largest weekly flow of funds into commodities during 2022.

They said that out of $12.3 billion that flowed into commodities that week some $3.4 billion went into Brent, largely in reaction to Russia's response to the EU and G7's price cap on Russian crude exports to third parties.

Russian President Vladimir Putin banned the supply of crude and oil products from Feb 1 for five months to nations that abided by the cap. His decree also included a clause that allowed him to overrule the ban in special cases.

READ MORE: Putin bans oil exports to nations that implement price cap

Russian crude has been diverted to India from Europe. Traders said Moscow planned to increase diesel exports from the Baltic sea port of Primorsk to 1.81 million tonnes in January, but exports from Tuapse were expected to fall to 1.333 million tonnes.