NEW YORK – Oil prices extended losses on Wednesday, battered by growing worries over the global economic outlook reported Xinhua.
The West Texas Intermediate (WTI) for February delivery dropped US$4.09, or 5.3 per cent, to settle at US$72.84 a barrel on the New York Mercantile Exchange. Brent crude for March delivery lost US$4.26, or 5.2 per cent, to settle at US$77.84 a barrel on the London ICE Futures Exchange.
Both the WTI and Brent settled at their lowest in more than three weeks, according to Dow Jones Market Data.
On Tuesday, the US crude bench market shed 4.15 per cent, while Brent lost 4.43 per cent, based on the front-month contracts.
“Oil prices got hammered by recession fears and risk aversion,” Phil Flynn, senior energy analyst at The PRICE Futures Group, said in a note on Wednesday, adding the latest warning from the International Monetary Fund (IMF) “caused people to run to safe havens like gold and silver, U.S. Treasuries and the dollar.”
IMF Managing Director Kristalina Georgieva warned on Sunday that 2023 will be “tougher” than last year, noting one third of the world economy could enter recession territory.
Traders awaited data on US fuel stockpiles as the US Energy Information Administration will release its weekly petroleum status report on Thursday, a day later than normal due to Monday’s New Year holiday. Analysts polled by S&P Global Commodity Insights expect the report to show an increase of 4.5 million barrels in US crude inventories for the week ending Dec 30. – Bernama
