Recession Fears Drive Oil Prices Down

Investors are growing increasingly concerned about an impending recession, leading to a more than 1% drop in oil prices on Wednesday. This worry stems from recent reports indicating a significant decline in consumer confidence in the United States, reaching its lowest point since the onset of the COVID-19 pandemic. Additionally, employers have posted fewer job openings than anticipated in March, further fueling economic concerns.

US Oil Inventories Add to Oversupply Worries

Compounding the issue, US oil inventories reportedly surged by 3.76 million barrels in the week ending April 25. This increase has stoked fears of an oversupply in the market, putting additional downward pressure on oil prices.

Price Movements

West Texas Intermediate (WTI) for June deliveries fell by 1.29% to $59.64 per barrel at 5:25 am ET. Similarly, Brent crude for the same month's settlements dipped by 1.37%, trading at $63.35 per barrel at 5:26 am ET.