After hovering above $80 U.S. a barrel for most of January, crude oil prices have now fallen to their lowest level in three weeks amid rising concerns about global energy demand.
West Texas Intermediate (WTI) crude oil, the U.S. standard, is now trading at $76.60 U.S. per barrel, which is its lowest price since January 11 of this year.
Brent crude oil, the international benchmark, is trading at $83.80 U.S. a barrel, also its lowest level in several weeks.
While China’s reopening from COVID-19 lockdowns sparked a rally in crude prices to start the year, the market has struggled as it tests the 50-day and 100-day moving averages.
Oil prices have been buoyed in recent months by Chinese demand, as well as the U.S. government’s efforts to replenish their Strategic Petroleum Reserves, and the European Union’s ban on imports of Russian oil products.
However, there are growing concerns about the potential for a global economic recession this year, which is weighing on crude oil prices, say analysts.
Price momentum across energy markets has declined throughout the last week, and the short-term trading signal on Brent crude oil that is traded on the Intercontinental Exchange switched to a “sell” indication in recent days.
