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Ammon News - Global oil prices fell to below $80 a barrel for the first time since January, on persistent fears of a recession and rising interest rates by central banks worldwide.

After starting the week in positive territory, Brent, the benchmark for two thirds of the world’s oil, was trading 0.18 per cent lower at $$79.21 a barrel at 7.17am UAE time on Wednesday. West Texas Intermediate, the gauge that tracks US crude, was down 0.30 per cent at $74.03 a barrel.

Brent fell 4 per cent at the end of trading on Tuesday, while WTI ended the day 3.5 per cent lower.

“Crude prices tumbled as recession worries dominated the headlines and as the oil market lost its tightness,” said Edward Moya, a senior market analyst at Oanda.

“It seems to have happened quickly but the crude demand outlook is getting crushed as we are in a slowdown basically across all the major economies. Supplies seem plentiful over the near term and that has everyone hesitating on what was one of the easiest trades of the year.”

Brent crude had gained more than 3 per cent in trading on Monday after the Opec+ alliance of 23 producers decided to extend its output oil policy and European sanctions on Russian crude came into effect on the same day.