Oil restores position after falling nearly 4%

Oil prices have stabilised on Thursday after falling by four percent on Wednesday amid concerns of a recession.

Brent Crude was trading at $78.15 today’s morning, increasing from $77.69. West Texas Intermediate has reached $74.62 a barrel, increasing from $74.30.

Ehsan Khoman, head of emerging markets research for Europe, the Middle East and Africa at MUFG Bank explained this was a “gap fill.”

“A sudden spike in prices… created a breach…. This gap has prompted a corrective move to fill the large break in prices.” Oil prices have spiked earlier this month, Brent surged to nearly $88, following sudden production cuts by OPEC + countries.

Edward Moya, senior market analyst at Oanda elaborated how several factors have been affecting the prices of oil. “Oil has been in free fall over a challenging economic environment, banking jitters, disappointment with China’s reopening…” Prices have also been affected by the large decrease in U.S. crude stocks.