Wednesday, July 3, 2024

Oil falls below $100 per barrel as recession fears mount

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Oil sees biggest daily percentage drop since March

Oil prices tumbled below $100 per barrel for the first time since March amid worries that a recession will hurt global demand.

Oil plunged about 9% in the biggest daily drop since March. Global benchmark Brent crude settled at $102.77 a barrel while U.S. West Texas Intermediate (WTI), the U.S. oil benchmark, settled 8.24%, or $8.93, lower at $99.50 per barrel.

Both benchmarks logged their biggest daily percentage decline since March 9 and hit share prices of major oil and gas companies, according to Reuters report.

Some experts warn that oil prices could fall to as low as $60 per barrel by the end of the year if an economic downturn significantly curtails demand.

American multinational investment bank Citi analysts say prices will fall to around $60 by the end of 2022 if the economy does fall into a recession. Citi also warned that crude oil could collapse to $45 by end-2023 if a demand-crippling recession hits.

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