Crude prices are marked by strong declines Thursday due to heightened fear of a US recession and a substantial increase in the country’s inventories. A surprising surge in US oil stocks affects prices as well, reports Reuters.

A barrel of European reference oil Brent trades at USD 83.87 Thursday morning against USD 87.29 on Wednesday afternoon, whereas US counterpart West Texas Intermediate sells at the same times for USD 78.23 against USD 81.77.

Data show that December’s retail sales in the US declined more than in any other month last year, dragging down consumption and the economy overall. Falling procurement of other goods contribute to this trend as well.

”The deterioration in US economic data darkened the (oil) demand outlook as recession fears mount again. Risk-off sentiment has sent growth-sensitive commodities down,” says Tina Teng, an analyst at CMC Markets, to Reuters.

US oil inventories increased last week by approx. 7.6 million barrels, according to sources citing numbers from the American Petroleum Institute (API).

A Reuters-compiled analyst poll had otherwise suggested an impending decrease in oil stocks of around 600,000 barrels. The development represents the second consecutive week with substantial increases in oil inventories.

Official crude stock numbers are set to arrive later on Thursday from the US Energy Information Administration (EIA).