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Oil prices extend decline as recession threatens to cloud global demand outlook


Oil prices fell early in Asian trading on Thursday, after hitting a nearly three-month low in the previous session, as fears of a possible global recession raised worries about oil demand.

Brent crude futures fell 71 cents to $99.98 a barrel at 0013 GMT. WTI crude futures fell 62 cents to $97.91 a barrel.

The declines follow a dramatic fall on Tuesday. WTI fell 8% while Brent fell 9% – a drop of $10.73 that was the third largest for the contract since it began trading in 1988.

“Oil is decimated with little new information on production or consumption,” said Stephen Innes, managing partner of SPI Asset Management.

“Yet with commodity traders becoming very risk averse due to growing demand and still hawkish Fed policy concerns, the risk of recession is like an anvil around the market’s neck,” he said. he added.

Investors were waiting for US government data due Thursday that will shed light on the state of national oil and fuel inventories.

Industry data on Wednesday showed U.S. crude inventories rose about 3.8 million barrels last week, market sources said. Gasoline inventories fell by 1.8 million barrels, while distillate inventories fell by about 635,000 barrels.

(Edited by : Sangam Sing)

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