Oil prices have fallen again this week, now the fourth consecutive weekly price drop as global stock markets failed to fully recover from Monday’s losses when recession fears sent global markets into a freefall.

Recent manufacturing surveys from the United States, the eurozone and China which have all shown activity stalling in the second and third quarters after a brief rebound at the start of the year added further pressure to global stocks this week.

However, oil prices did recover as data released midweek by the Energy Information Administration (EIA) suggests demand remained strong rising expectations that major Central Banks will reduce interest rates, and continued heightened geopolitical concerns in the Middle East, limited the downward price movement. According to data released by the EIA late Wednesday, US commercial crude oil inventories declined more than expected suggesting demand does indeed remain robust.

Employment data released in the US, the world’s largest economy and oil consumer increased the concern of a US recession, analysts noted that this week’s US unemployment benefit applications might provide more evidence that the US economy could be softening which in turn could prove decisive in the direction of global markets.

Any stagnation in the US economy increases the likelihood of the US Federal Reserve to begin cutting interest rates. Low interest rates also decrease the value of the US dollar against other currencies and support upward price movements by influencing demand.  Furthermore, lower interest rates often increase households spending power, which can lead to increased consumption of goods and services and in turn demand for oil.

Fuel cards users can expect prices to fall in the region of 1 pence per litre for next week.