Global oil prices have plummeted to 12-week lows amid fears of falling demand due to the global recession.
Brent for September delivery fell 2.99 or 2.9 percent, to 99.78, while US West Texas Intermediate (WTI) crude fell 3.19 percent or 3.2 percent to 96.31, according to Reuters.
Brent prices fell 9 percent and WTI fell 8 percent, the lowest level since April 11.
According to the report, both benchmarks remained technically below the 30 level on the second day of the oversold treaty with the Relative Strength Index (RSI).
If Brent closes at that level, it will be the first two days since December 2021 will remain on the oversold treaty.
Investment bank Goldman Sachs says falling oil demand is due to growing fears of a recession.
Similarly, the cost of German government debt has fallen to a five-week low due to fears of a recession.
The US stock indexes also declined in the wake of the Federal Reserve’s decision to review the economic situation and interest rate hikes.
According to the report, the fall in oil prices is also due to the rising value of the dollar, which has reached a nearly 20-year high against other currencies.
Stabilization of the dollar makes oil more expensive for other currency holders and reduces demand.