WTI touch fresh daily lows on accelerating recession woes

West Texas Intermediate has fallen to the lowest in nearly one year. Recession-linked concerns dominate the market sentiment and the Fed’s rate decision next week is awaited with all open eyes.

The American crude fell to the lowest in nearly a year on Wednesday despite the good news in China’s steps to ease its zero-Covid policies. A little optimism was not able to conquer the weakened economic background and the sensed low liquidity across financial markets. At the time of writing, crude is trading down by almost 2.8%, sliding from a high of $75.36 to a low of $71.77.

The EU’s fresh sanction against seaborne shipments of crude oil from Russia has been in effect since Monday, along with a price cap agreed to by the G7 leading industrialized economies and Australia.

Ahead of the Fed’s decision that looks to raise interest rates again when its policy committee meets next week, expectations of a recession in the US are impacting oil prices.