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Prices for %CrudeOil in America are down near $70 U.S. a barrel and at their lowest level in six months amid growing fears of a recession in the world’s biggest economy.

West Texas Intermediate (WTI) crude oil, the U.S. standard, was trading as low as $71.92 U.S. per barrel, down 2.18% ahead of the market’s open today (Aug. 5).

WTI crude has now erased its gain for the year and is trading at its lowest level in six months as markets anticipate that the U.S. economy may slide into a recession in coming months.

Brent crude oil, the international standard, is trading at $76 U.S. a barrel and in negative territory on the year after previously trading higher on growing risks in the Middle East.

Natural gas prices also continue to fall, continuing a trend that began last winter as warmer weather hurt home heating demand.

Prices for natural gas are down 3% ahead of the market’s open and down 23.7% on the year.

The selloff in energy prices comes after U.S. job and manufacturing data surprised to the downside in recent days, prompting fears that the American economy is tipping into a recession.

A recession is typically defined as two consecutive quarters of economic contraction.

The U.S. unemployment rate rose to 4.3% in July, its highest level since October 2021. At the same time, U.S. manufacturing activity contracted in July for a fourth consecutive month.

The weak data in the U.S. comes as an economic downturn in China worsens, hurting energy demand. China is the world’s biggest importer of crude oil.

OPEC+ was expected to increase its oil production in October of this year, though the group said last week that its output could be adjusted “…depending on prevailing market conditions.”

Geopolitical risks remain as well, with Israel preparing for an attack from Iran after it assassinated Hamas leader Ismail Haniyeh in Tehran.