Oil prices drop as US data stokes recession fears

Brent’s price plunged as fears of a severe recession in the US, the world’s largest oil-consuming nation, rattled oil investors and market analysts.

PHOTO: Oil barrels and a pump jack with the US flag and Dollar bill in the background. Getty Images

Unemployment rate in the US saw a growth of 4.3% in July, reaching the highest level in nearly three years, after increasing by about 4.1% in the previous month, according to the US Bureau of Labour Statistics.

This news has raised concerns about a slowdown in the US economy, which could potentially lead the country to a state of recession, analysts said.

“Oil prices came under further pressure on Friday following a weaker-than-expected US jobs report hitting most risk assets,” two analysts from ING Bank said.

By Aparupa Mazumder 

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