Crude Oil Prices Slump Further Amid Global Economic Concerns
Crude Oil’s rough start to the year has worsened as a deteriorating demand outlook came to the fore, on the fourth day of January.
The slump is buttressed by predictions of a possible US recession, China’s near-term struggles with Covid-19, and milder winter weather.
Brent futures fell $1.88 to $80.22 a barrel, a 2.3% loss, by 1032 GMT. while U.S. West Texas Intermediate crude dropped $1.68, or 2.2%, to $75.25 per barrel after sinking 4.2% on Tuesday in the biggest drop since November.
Both benchmarks plunged more than 4% on Tuesday, with Brent suffering its biggest one-day loss in more than three months.
Industry group American Petroleum Institute is due to release data on U.S. crude inventories at 4.30 p.m. EDT (2030 GMT) on Wednesday. The Energy Information Administration, the statistical arm of the U.S. Department of Energy, will release its own figures at 10.30 a.m. (1430 GMT) on Thursday.
Bloomberg/Reuters/Hauwa Abu
