WTI crude futures fell below $98 today. following recovering above the $100 level initially
As of 9:06 p.m. Thai time, the West Texas Intermediate Crude Oil (WTI) contract was delivered in August. It traded on the NYMEX minus $1.54, or 1.55%, to $97.92/barrel. Brent crude oil dropped $1.31, or 1.27%, to $101.46 a barrel.
WTI crude for August delivery ended down $8.93, or 8.2 percent, to $99.50 a barrel. which is the lowest closing level since April 25
The Brent crude oil contract was delivered in September. It fell $10.73, or 9.5 percent, to $102.77 a barrel. which is the lowest closing level since May 10
WTI and Brent crude both posted their biggest single-day losses since March 9 amid concerns regarding a recession. and China’s resumption of lockdown measures to contain the spread of COVID-19.
The last time WTI crude oil dropped below $100/barrel. Happened on May 11
WTI oil prices had hit $130.50/barrel in March. After the Russian troops invaded Ukraine. while Brent crude oil prices soared near 140 dollars a barrel. Prices of WTI and Brent crude both hit record highs since 2008.
Citigroup predicts that Brent crude is expected to drop to $65 a barrel later this year and to $45 later next year. If the world economy faces a recession This will affect the demand for oil.
The Federal Reserve Bank of Atlanta released its latest GDPNow forecast model showing that The US economy contracted 2.1% in the second quarter, from an earlier indication of a 1.0% contraction.
GDPNow forecasts show that the US economy contracted in the second quarter more severely than the 1.6% contraction in the first quarter, indicating that the US economy has entered a recession. because the economy contracted for 2 consecutive quarters
