Oil prices decreased on Thursday influenced by weak economic data from the US amid recession fears and a hefty rise in crude stockpiles.
International benchmark Brent crude traded at $83.92 per barrel at 9.20 a.m. local time (0620GMT), down 1.25% from the closing price of $84.98 a barrel in the previous trading session.
The American benchmark West Texas Intermediate (WTI) traded at $78.63 per barrel at the same time, a 1.47% fall after the previous session closed at $79.8 a barrel.
Oil prices retreated from their highest level in over a month after weak US data fueled recession worries.
US Producer Price Index recorded its biggest decline since April 2020 in December, with a 0.5% fall, according to data released Wednesday.
Retail sales in the US fell 1.1% in December, below expectations, while industrial production fell 0.7%, the biggest drop since September 2021. Additionally, the US Fed reported that American companies expect “low growth” in the economy in the coming months.
Meanwhile, US crude oil inventories rose by about 7.6 million barrels during the week ended Jan. 13, data from the American Petroleum Institute showed.
A more-than-expected stockpile increase signals a drop in crude demand, weighing prices down.
Official stock data from the US Energy Information Administration is scheduled to release later in the day, and if the estimated build-in stock levels is confirmed, prices are expected to fall further.
Source: Anadolu Agency