Oil slumps more than 3.5%; Brent below $78

Oil drilling rigs

Oil prices declined today, April 26, amid recession fears in the world's largest economy.

Two analysts at Dutch banking company ING said the drop in refinery margins had raised concerns about crude demand.

US Energy Information Administration data revealed that oil stocks fell by 5.1 million barrels in the week ended April 21, compared to expectations of a 1.4 million barrel drop.

Gasoline stocks in the US also fell by about 2.4 million barrels, and distillate stocks fell by 600,000 barrels.

Fatih Birol, Director of the International Energy Agency, warned against OPEC's intervention to increase oil prices because it may backfire, as rising prices may reduce demand for fuel and push consumers towards electricity and other renewable energy sources, especially as the global economy is going through a fragile stage.

In terms of trading, Brent crude futures contracts for June delivery fell by 3.8%, or $3.08, to $77.69 a barrel.

WTI crude for June delivery decreased by 3.6%, or $2.77, to record $74.30 per barrel.