Oil Prices React to Economic Indicators

Investors' growing concerns over a potential recession have led to a more than 1% drop in oil prices this Wednesday. This shift comes in response to recent reports highlighting a significant decline in US consumer confidence, reaching its lowest since the COVID-19 pandemic began, alongside fewer than expected job openings in March.

Supply Concerns Add to Market Pressures

Compounding the issue, US oil inventories saw an unexpected rise, increasing by 3.76 million barrels in the week ending April 25. This development has sparked fears of an oversupply in the market, further influencing price drops.

Price Movements at a Glance

By early Wednesday, West Texas Intermediate (WTI) for June deliveries had fallen by 1.29% to $59.64 per barrel. Similarly, Brent crude for the same month dipped by 1.37%, trading at $63.35 per barrel.