Oil plunged for the third day in a row on Wednesday, with WTI losing $70 a barrel amid gloomier prospects for the US economy and following the Fed’s decision.
Oil extended its losses on Wednesday, after plunging 5% in the previous session, given investors’ concern about the health of the US economy ahead of the Federal Reserve’s expected interest rate hike.
Brent crude futures fell $2.27, or 3%, to $73.05, while West Texas Intermediate (WTI) crude fell $2.28, or 3.1%, to $69. .38.
Both referentials closed in its lowest level since the end of March and in the previous day they also recorded their biggest one-day percentage drops since early January.
The Federal Reserve raised interest rates 25 basis points to combat inflationwhile the European Central Bank will also raise rates at its regular monetary policy meeting on Thursday.
Energy prices are also under pressure after data from China over the weekend showed manufacturing activity fell unexpectedly in April. China is the world’s largest consumer of energy and the main buyer of crude oil.
Source: Ambito
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