Oil Prices End Sharply Lower on Recession ‘Fear Factors’

US benchmark oil prices post another sharp decline, falling 2.6% to $76.71 a barrel, the lowest closing price since Jan. 3. The market has now fallen by 8.1% over the past two trading sessions and is only about $1 higher from where it began the year. “Oil prices are in decline as the fear factors of a global recession fortify, and a strong possibility that BOE is likely to defend the pound by raising rates faster than expected,” says Spartan Capital’s Peter Cardillo in an email. “A move by BOE will weigh on oil prices, worsening its negative technical situation, thereby sending spot near the $70 range.”