Oil prices fell during trading yesterday, Tuesday, after two sessions of gains, as fears of an economic slowdown and the strength of the dollar overshadowed hopes for an increase in Chinese demand and a decline in US crude stocks.
Brent crude futures fell $1.96, or 2.4%, to close at $80.77 a barrel, and West Texas Intermediate crude fell $1.69, or 2.2%, to close at $77.07.
U.S. consumer confidence fell to a nine-month low in April, sparking fears of a recession the day after regional lender First Republic reported a sharp drop in deposits of more than $100 billion, sparking fears of a possible recession. Possible banking crisis
The dollar rose amid deep concerns about corporate profits and the global economy, and the US currency pressured demand for oil by making the commodity more expensive for buyers holding other currencies.
Oil traders have also expressed concern that weak refining margins worldwide may force refiners to curb oil purchases.
Early in the session, oil prices rose, supported by optimism that the holiday in China will boost demand for fuel, coinciding with expectations of a decline in US crude stocks.