Oil Prices Plunge As Recession Worries Mount

Oil prices plunged on Wednesday as worries of economic recession intensified and the Biden administration pushed for U.S. fuel cost cuts.

Benchmark Brent crude futures fell $4.99, or 4.3 percent, to $109.69 a barrel, while WTI crude futures were down $5.29, or 4.8 percent, at $104.23.

Recession worries gripped financial markets, with Goldman Sachs economists projecting a 30 percent chance of a U.S. recession over the next 12 months.

Elon Musk and Nouriel Roubini have also warned of a growing likelihood that the U.S. economy will fall into recession.

Amid mounting concerns about aggressive monetary policy tightening, investors await speeches by a couple of European Central Bank policy-makers and U.S. Federal Reserve Chair Jerome Powell later in the day.

Also weighing on the oil market is a push by the Biden administration to bring down soaring fuel costs.

To curtail rising gas prices, Biden is expected to call for temporarily suspending the 18.4-cents a gallon federal tax on gasoline., Reuters reported.

Weekly U.S. petroleum inventory data from the American Petroleum Institute is due later in the day, a day later than usual due to Monday's holiday.

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