MELBOURNE, Jan 19 (Reuters) – Oil futures fell as much as $1 on Thursday over recession fears as a sharp decline in U.S. retail sales and manufacturing output muddied the outlook for demand, while industry data showing a surprise jump in U.S. crude stocks also weighed on prices.
Brent crude futures were last down 82 cents, or 1%, to $84.16 a barrel at 0330 GMT, after losses of around 1% on Wednesday. U.S. West Texas Intermediate (WTI) crude futures also declined 90 cents, or 1.1%, to $78.58 a barrel.
“The deteriorated U.S. economic data darkened the (oil) demand outlook as recession fears mount again. Risk-off sentiment has sent the growth-sensitive commodities down, typically oil,” said Tina Teng, an analyst at CMC Markets.
“Profit-taking might be also a reason that pressed on the oil prices ahead of the U.S. major tech earnings.”
U.S. December retail sales fell by the most in a year, weighed by declines in purchases of motor vehicles and a range of other goods, putting consumer spending and the overall economy on a weaker growth path heading into 2023.