Crude oil prices plummeted in morning trading, shedding nearly 3% of their value as concerns over a global recession and increased supply from OPEC nations sent shockwaves through the market.

The price of West Texas Intermediate (WTI) crude, the most widely traded benchmark for US crude, fell to $68.42 per barrel, its lowest level in two months. The decline came as investors sought safer-havens assets amid growing fears of an economic downturn. The energy sector was among the hardest hit, with shares of major oil majors such as ExxonMobil and Chevron plummeting over 5% in early trading. In contrast, the price of Brent crude, a global benchmark that tracks prices in Europe and the Middle East, rose 0.6% to $74.14 per barrel, driven by strong demand from countries such as China. The decline in oil prices was attributed to various factors including rising US interest rates, which have made borrowing more expensive and reduced consumer spending power, as well as a global economic slowdown that has led to reduced demand for energy. OPEC’s decision to increase production by 1 million barrels per day in January also contributed to the decline in oil prices, as it is seen as an effort to stabilize prices and reduce market volatility.