Oil Prices Decline Amid Economic Concerns

Oil prices experienced a significant drop of more than 1% on Wednesday, as growing fears of an impending recession spooked investors. Recent reports highlighting a sharp decline in U.S. consumer confidence to its lowest since the COVID-19 pandemic began, alongside fewer-than-expected job openings in March, have exacerbated these concerns.

US Oil Inventories Add to Oversupply Worries

Adding to the downward pressure on prices, U.S. 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 at 5:25 am ET, while Brent for the same month's settlements dipped by 1.37% to $63.35 per barrel at 5:26 am ET.