U.S. oil just tumbled below $100 a barrel — What that says about recession fears and tight crude supplies – By Myra P. Saefong (MarketWatch) / July 5, 2022
Concerns about a recession and a drop in energy demand led to a drop in U.S. benchmark West Texas Intermediate crude-oil prices below the $100-a-barrel mark on Tuesday for the first time in months.
That’s contributed to talk of a potential “buying opportunity” for traders, even as some analysts expect further price declines.
“Massive speculation on demand destruction story” led to Tuesday’s “spectacular decline,” Manish Raj, chief financial officer at Velandera Energy Partners, told MarketWatch.
WTI oil futures on Tuesday fell below the key $100 mark, with the front-month August contract tapping a low of $97.43 a barrel on the New York Mercantile Exchange, the lowest intraday level since April, FactSet data show. On Tuesday, it settled at $99.50, down $8.93, or 8.2%.
