Fears of a worldwide recession and weakened demand for oil continues to weigh down prices on both major benchmarks – which are now trading well below the $100 milestone.
Brent Crude is down 1.05 per cent today, wallowing at $93.92 per barrel, while WTI Crude has slumped a further 1.09 per cent to $88.04 per barrel.
This follows front month prices hitting their lowest levels since February, posting their largest weekly drops since April with Brent Crude tumbling 13.7 per cent and WTI Crude 9.7 per cent.
Prices have now settled below levels prior to Russia’s invasion of Ukraine.
The two benchmarks recovered some losses on Friday after reports of positive jobs growth in the US, the world’s top oil consumer, which unexpectedly accelerated in July.
Meanwhile, China, the world’s top crude importer, brought in 8.8m barrels per day of crude in July, up from a four-year low in June.
However, this was still 9.5 per cent less than a year earlier, according to customs data.
In terms of US production, energy firms week cut the number of oil rigs by the most since September in the first drop in 10 weeks.
In Europe, Russian crude and oil products exports continued to flow ahead of an impending embargo on seaborne shipments from the European Union, which will take effect on 5 December.
Last week, the Bank of England warned of a protracted upcoming recession and 13 per cent inflation rates.