Oil plummets below $100 per barrel as recession risks come to forefront
Oil futures dropped below $100 a barrel for the first time since May as concerns grow that a global economic slowdown will ultimately hobble demand.
West Texas Intermediate crude futures dropped as much as 9.3% to near $98 a barrel. Oil was pressured in a low liquidity session on Tuesday as equities fell and the dollar surged, making commodities priced in the currency less attractive. Citigroup Inc. said that crude could fall to $65 this year in the event of a recession, a call in stark contrast to JPMorgan Chase & Co.’s most bullish $380 a barrel scenario.
“Crude oil prices have slumped as weakening demand concerns are starting to outweigh fears about tight supply,” said Fawad Razaqzada, market analyst at City Index.
