The price of crude oil fell on Thursday after the weak US economic data gave reasons for recession fears.
While Brent crude futures fell 74 cents, or 0.9%, to $84.25 in early trading, US crude West Texas Intermediate (WTI) slid 73 cents, also 0.9%, to $79.88 a barrel.
Brent and WTI have both gained more than 5.5% so far this week, headed towards three straight weeks of increase, after the Organization of the Petroleum Exporting Countries and allies including Russia, a grouping known as OPEC+, pledged voluntary production cuts.
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WTI is an oil benchmark used by oil markets to representing oil produced in the U.S.
It is based on oil at a large tank and pipeline hub in Cushing, Oklahoma. Like Brent oil, WTI is priced as a light oil, but it doesn’t have the same global reach.
While Brent on the other hand is a backronym or mnemonic for the formation layers of the oil field: Broom, Rannoch, Etive, Ness and Tarbert.
Petroleum production from Europe, Africa, and the Middle East flowing West tends to be priced relative to this oil, i.e. it forms a benchmark.
