- US oil slumped below $100 on Tuesday as growing fears of recession caught up with the market.
- Many analysts said the sell-off went too far, and that prices are likely to stay hot as Russian production falls.
Oil prices tumbled on Tuesday as growing concerns about a global recession caught up with energy markets, reports CNBC.
WTI crude falls the most
WTI crude, the US oil price, fell the most since April to a four-month low below $100 a barrel. Brent crude, the international benchmark, fell as low as $101, down from close to $140 in early March.
WTI traded just above $100 on Wednesday, while Brent rose to around $104.
Possible recession
The sharp drops in prices came as traders dialed down their expectations for demand, with economists’ warnings about a possible central bank-driven recession growing louder. The strength of the US dollar — oil is priced in bucks — also weighed on the market.
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Source: CNBC
