Tuesday saw a nearly $10 decline in international oil prices as investors became more aware of the impending global crisis.
By 4:14 PM GMT, the price of benchmark Brent crude had dropped 8.85 percent to $103.5 per barrel. U.S. West Texas Intermediate (WTI) crude slid 8.7% from Friday’s close to $99.66 a barrel, falling under $100 for the first time since May 11.
Despite persistent supply worries, oil futures fell due to worries about a slowdown in the global economy and aggressive action by central banks worldwide to contain growing inflation.
Additionally, Citigroup Inc. issued a warning that if the recession cripples growth, crude oil prices might fall to $65 per barrel by the end of this year and to $45 by the end of the following year. The expectation, however, is predicated on the absence of any intervention by OPEC+ producers.
On the other side, JPMorgan Chase & Co. analysts estimated that if Russia uses retaliatory output cutbacks to fight the US and European sanctions, oil could rise to $380 per barrel.
The nations might get some much-needed breathing room if there is a persistent decline in global oil prices.