Oil Market Reacts to Economic Concerns

Investors are growing increasingly concerned about the possibility of a global recession, leading to a 1% drop in oil prices on Wednesday. This downturn comes in response to recent reports highlighting a significant decline in U.S. consumer confidence, reaching its lowest point since the onset of the COVID-19 pandemic. Additionally, the number of job openings in March fell short of expectations, further fueling economic worries.

Supply Concerns Add to Market Pressure

Compounding these fears, U.S. oil inventories saw an unexpected increase, with reports indicating a rise of 3.76 million barrels in the week ending April 25. This surge has sparked concerns over a potential oversupply in the market, putting additional downward pressure on oil prices.

Price Movements at a Glance

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