Oil Prices Take a Hit

Oil prices experienced a significant drop of more than 1% on Wednesday, as investor concerns over a potential recession intensified. This downturn follows recent reports highlighting a sharp decline in US consumer confidence, reaching its lowest point since the onset of the COVID-19 pandemic, alongside fewer than expected job openings in March.

US Oil Inventories Rise

Adding to the market's unease, US oil inventories reportedly surged by 3.76 million barrels in the week ending April 25, sparking fears of an oversupply. This development has further pressured oil prices downward.

Market Reaction

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