Recession Fears Trigger Oil Price Decline

Investors are growing increasingly concerned about an impending recession, leading to a more than 1% drop in oil prices on Wednesday. This comes in the wake of reports indicating a significant decline in US consumer confidence, reaching its lowest since the COVID-19 pandemic began, alongside fewer than expected job openings in March.

US Oil Inventories Add to Oversupply Worries

Further exacerbating the situation, US oil inventories reportedly surged by 3.76 million barrels in the week ending April 25, raising fears of an oversupply in the market.

Market Reaction

West Texas Intermediate (WTI) for June deliveries fell by 1.29% to $59.64 per barrel, while Brent for the same month's settlements dipped by 1.37% to $63.35 per barrel.