Recession Fears Hit Oil Market

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.

Job Openings and Oil Inventories Add to Concerns

Further exacerbating these fears, employers posted fewer job openings than anticipated in March. Additionally, the US oil inventories saw an unexpected increase, rising by 3.76 million barrels in the week ending April 25, raising alarms over potential oversupply.

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 for the same month's settlements decreased by 1.37%, trading at $63.35 per barrel at 5:26 am ET.