Oil plunged below $75 per barrel

Oil quotes are declining on Wednesday, continuing the dynamics of yesterday. On Tuesday, Brent quotes fell sharply from the level of $79.70 to 75.20 per barrel. The current price of the commodity asset is $74.28.

North American WTI oil shows similar dynamics: a drop from $76 per barrel to $70.58. Both brands ended trading at the lowest level since March 24 on fears of a global recession and expectations of another interest rate hike by the US Federal Reserve.

Even the fundamental indicators of the market, which are now stronger than ever, cannot support prices in the current conditions. Analysts note that «fears of a recession have become a hurricane, destroying everything in its path, including the oil market.» 

Additional pressure on the oil market is exerted by expectations that the US Federal Reserve will raise the key interest rate by 25 basis points at today's meeting. At the same time, the Central Bank may signal its readiness to take a break in the cycle of tightening monetary policy at a subsequent meeting.

Investors are also waiting for an official report from the US Department of Energy on crude oil reserves in the country. Experts on average predict a reduction in oil reserves by 3.3 million barrels, gasoline and distillates – by 300 thousand and 1.5 million barrels, respectively. Yesterday's data from the American Petroleum Institute (API) showed a drop in oil reserves in the States by 3.9 million barrels.