Global benchmark Brent crude tumbled $7 to beneath $100 a barrel on Tuesday on a strengthening dollar, need-sapping Covid-19 curbs in major crude importer China, and rising fears of a world-wide financial slowdown.
The sharp fall followed a thirty day period of volatile buying and selling in which buyers have sold oil positions on problems that aggressive interest rate hikes to stem inflation will spur an economic downturn that will pull the rug out from oil demand from customers.
Brent crude futures were down $6.87, or 6.4%, at $100.22 a barrel by 1615 GMT. US West Texas Intermediate crude was down $7.36, or 7%, at $96.74. Oil price ranges are going through excessive stress “as a defensive posture continues with customer sentiment still in a frustrated method along with Covid re-surface in China,” mentioned Dennis Kissler, Senior Vice President for Buying and selling at BOK Financial.
A document high greenback was triggering much more offering liquidation, Kissler additional. Oil is normally priced in US pounds, so a much better buck tends to make the commodity additional high priced to holders of other currencies