Brent crude has dropped nearly 4.6%, falling below $90, while WTI has plummeted to $82, shedding over 5%. Fears of a global recession seem to be driving the oil markets into a longer-term spiral downwards.
As of 12:40 p.m. EST, Brent crude is trading down 4.57% at $88.59 per barrel, a change of $4.24 on the day. WTI is trading down 5.01% at $82.53, a change of $4.35 on the day.
On Wednesday, oil prices dropped more than 5%, falling to just over $80 per barrel, their lowest point since January. The rising fears of a global economic downturn hurting demand have weighed on energy markets.
The price of the international benchmark Brent crude has fallen below $90 per barrel for the first time since early February and is now trading at just over $88.
Despite some recent bullish developments, such as Russia keeping the Nord Stream pipeline offline and OPEC+ cutting production, oil prices were unable to rally on Wednesday, continuing a recent slide.
According to one analyst, Kenny Polcari, chief market strategist at SlateStone Wealth, oil and gas stocks are set to get a boost from heightened tensions surrounding Russian gas supplies to Europe. He suggests that investors should focus on big U.S. energy names that are also good dividend payers. One stock he named has risen 125% this year, and he believes there is more “room to run.”
Oil prices fell on Wednesday following more Covid curbs in China and expectations of more interest rate hikes globally.
U.S. West Texas Intermediate futures fell 1.45% to stand at $85.62 per barrel, while Brent crude futures slid 1.14% to $91.77 per barrel, erasing earlier gains following the latest OPEC+ meeting and its decision to pare output.
A Reuters forecast expects WTI to extend its downtrend to reach $83.17 per barrel.
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