Oil drops over 5%, Brent below $78

Oil drilling rigs

Oil prices plunged more than 5% today, Jan. 4, amid continued concerns over demand in 2023 as investors analysed the possibility of a global economic recession.

The ISM Manufacturing PMI for the US fell to the lowest level since May 2020, according to the latest data.

Meanwhile, coronavirus cases continue to rise in China after the authorities eased restrictions related to containing the spread of COVID-19.

In terms of trading, Brent crude recorded a decline of 5.2%, or $4.26, to reach $ 77.84 a barrel upon settlement.

WTI crude fell by 5.3%, or $4.09, to $72.84 a barrel.