Crude Oil Prices Fall Sharply as Recession Fears Grow
Headline Roundup July 5th, 2022
The U.S. WTI benchmark for crude oil prices fell over 9.5% to $98.05 per barrel on Tuesday.
While the drop in oil prices could spur a decline in U.S. gas prices, analysts in several outlets tied falling oil prices to an anticipated drop in demand and a potential approaching recession. Meanwhile, average U.S. gas prices fell to $4.80 per gallon from $4.88 a week earlier. Oil price predictions varied on Tuesday; CitiBank said oil prices could fall as low as $65 per barrel by 2023, and JPMorgan Chase analysts warned that Russian cuts to oil exports could spike prices to $380 per barrel.
The international Brent crude benchmark also fell over 10% to $101.48. While OPEC+ said it would produce over 50% more oil in July and August, Saudi Arabia hiked prices on oil exports to Asian countries on Tuesday amid rising demand.
Coverage was widespread and mostly balanced across the spectrum, particularly in business-focused outlets. Most coverage tied oil prices to the stock market and attributed Tuesday's price decline to recession fears.
Stocks and oil prices slid Tuesday coming off Independence Day weekend, amplifying the losses of Wall Street’s dismal first half and offering more warning signs of a coming downturn. Crude fell below $100 a barrel for the first time since May.
The Dow Jones Industrial tumbled more than 560 points or 1.9 percent in afternoon trading. The S&P 500 index fell by 60 points or 1.6 percent at midday Tuesday, while the tech heavy-Nasdaq lost 49 points or 0.4 percent.
Oil prices tumbled below $100 a barrel on Tuesday for the first time since May, falling more than 8% amid supply concerns and growing fears of a global recession.
Futures for the United States-based West Texas Intermediate fell Tuesday by 8%, or $8.67, trading below $100 at $99.76 per barrel for the first time since May 11.
Meanwhile, futures for international benchmark Brent crude fell by $7.70 to $104.76 per barrel.
Analysts at Citigroup said Tuesday that oil prices could fall to $65 per barrel by the end of this year and to $45 by the end...
Despite serious supply problems in the market, oil prices crashed on Tuesday morning due to renewed recession fears and the prospect of demand destruction.
Whilst most of 2022 could only be characterized as a period of hardship for Europe’s embattled industries, things are about to get even worse as Russian pipeline supply falls and power prices across the continent soared.
- Day-ahead prices in Italy and France have soared above €400 per MWh, with Germany trending slightly lower – attesting to the tightness, annual 2023 forward prices are only marginally...