Oil falls as U.S. inventories, recession fears weigh on market

Oil dropped alongside broader equity markets as investors awaited U.S. inventory data and worried a global slowdown will curtail consumption.

West Texas Intermediate slipped under US$80 a barrel as mixed company earnings and weaker business activity spurred concerns about the U.S. economy. While there’s an expectation that China’s oil demand will rise after it ditched restrictive COVID rules, uncertainty lingers over the strength of the rebound. 

Markets are also largely expecting a U.S. stockpile build in the weekly government data due later Wednesday. AlphaBBL reported that inventories at the largest storage hub in Cushing, Oklahoma, would rise the most since April 2020.