- Crude oil prices fall for third day on recession fears
- CPC blend loadings continuing as operator appeals court order
On July 7, mid-morning Asian trade saw crude oil futures extend losses for a third day, with the ICE Brent marker dropping below $100/b as recession worries weighed on oil prices as reported by S&P Global.
Recession concerns
The ICE September Brent futures contract was down $1.22/b (1.21%) from the previous close at $99.47/b, while the NYMEX August light sweet crude contract was down $1.02/b (1.04%) at $97.51/b.
Both crude oil markers were on track to post a third straight session of declines, with the front-month ICE Brent contract having shed close to 12% in value over the last two sessions.
Brent was now hovering at lows not seen since early April.
“Recession concerns are far from over, with oil prices delivering another 4% drop overnight,” IG market strategist Yeap Jun Rong said in a July 7 note.
Analysts noted that oil prices could have further fall in the event of a recession.
Oil supplies disrupted
Analysts at US financial conglomerate Citi said in a note earlier in the week that oil prices could fall to $65/b by year-end if a recession does occur, media reports indicated.
On the supply side, Kazakhstan came close to having its oil supplies disrupted on July 6.
Loadings of the country’s CPC blend from the Russian port of Novorossiisk were due to be suspended for 30 days by court order following an environmental case relating to spill prevention, the system operator said July 6.
Dubai crude swaps and inter month spreads were lower in mid-morning trade in Asia on July 7 from the previous close.
The September Dubai swap was pegged at $87.43/b at 10 am Singapore time (0200 GMT), down $4.48/b (4.87%) from the July 6 Asian market close.
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Source: S&P Global
