WTI pressured around $87.80 amid recession fears

WTI crude oil holds lower ground near six-month bottom after declining for the last four days. Fears of economic slowdown, central bank aggression outweigh geopolitical woes linked to China, Russia.

US jobs report for July as well as developments surrounding China will be important for fresh impulse. WTI crude oil prices remain depressed at the lowest levels in six months as fears of economic slowdown supersede geopolitical crisis. That said, the black gold seesaws around $87.8, after refreshing the multi-day low with the $87.18 mark, as traders await the US employment data on Friday.

The energy benchmark dropped during the last four consecutive days to print the six-month bottom the previous day as mixed statistics from the major economies join aggressive monetary policy actions to highlight the recession fears.

The Bank of England’s open acceptance of the economic slowdown in late 2022 amplified the fears. On the same line was Cleveland Fed President Loretta Mester who said that recession risks have increased in the US.

Treasury yields continued to portray the risk of recession as the difference between the 10-year and 2-year bond coupons remain the widest since 2000. That said, the US 10-year Treasury yields closed near 2.069% while the 2-year counterpart dropped to 3.049% at the latest.

A smaller output increase by OPEC+ has helped oil buyers but did not. The reason could be linked to the weekly stockpile data from the US Energy Information Administration marked a notable increase in inventories.