Oil prices fall to 8-month lows amid U.S. recession fears
(MENAFN) On Monday, oil prices remained close to eight-month lows as concerns over a potential U.S. recession overshadowed worries about possible supply disruptions from rising Middle Eastern tensions. brent crude futures edged down by 4 cents, or 0.1 percent, settling at USD76.77 per barrel, while West Texas Intermediate (WTI) crude futures decreased by 13 cents, or 0.2 percent, to USD73.39 per barrel.
Although the ongoing conflict in Gaza, including recent Israeli airstrikes on schools that resulted in casualties, has raised concerns about a potential escalation and its impact on oil exports, these factors have not prevented the decline in oil prices. Both Brent and WTI futures fell more than 3 percent on Friday, reaching their lowest levels since January. The drop was further fueled by fears of a U.S. recession and OPEC+’s decision to proceed with its plan to gradually reduce voluntary production cuts starting in October. This led to oil contracts experiencing their fourth consecutive weekly loss, marking the longest losing streak since November and reflecting broader market uncertainty.
The persistent drop in oil prices highlights the market's growing concerns about economic stability and future demand. Despite geopolitical tensions in the Middle East, investor anxieties over a potential economic slowdown in the U.S. have dominated market sentiment, driving prices lower and contributing to an extended period of declining oil values.
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