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Oil tumbles more than 9%, breaks below $100 as recession fears mount


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Oil tumbles more than 9%, breaks below $100 as recession fears mount

Source: CNBC

Oil prices tumbled Tuesday with the U.S. benchmark falling below $100 as recession fears grow, sparking fears that an economic slowdown will cut demand for petroleum products. West Texas Intermediate crude, the U.S. oil benchmark, slid 9%, or $9.83, to trade at $98.60 per barrel. The contract last traded under $100 on May 11. 

International benchmark Brent crude shed 9.9%, or $11.46, to trade at $102.04 per barrel Tuesday. Ritterbusch and Associates attributed the move to “tightness in global oil balances increasingly being countered by strong likelihood of recession that has begun to curtail oil demand.” 

″[T]he oil market appears to be homing in on some recent weakening in apparent demand for gasoline and diesel,” the firm wrote in a note to clients. Both contracts posted losses in June, snapping six straight months of gains as recession fears cause Wall Street to reconsider the demand outlook. 

Citi said Tuesday that Brent could fall to $65 by the end of this year should the economy tip into a recession. “In a recession scenario with rising unemployment, household and corporate bankruptcies, commodities would chase a falling cost curve as costs deflate and margins turn negative to drive supply curtailments,” the firm wrote in a note to clients.

Read more: https://www.cnbc.com/2022/07/05/oil-tumbles-more-than-8percent-breaks-below-100-as-recession-fears-mount.html 

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People here started talking about a looming recession a while ago and the resident Left wing tards laughed at it. Now they start threads about it

"Look see what did I tell you!!!111"  

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7 minutes ago, Skidooski said:

People here started talking about a looming recession a while ago and the resident Left wing tards laughed at it. Now they start threads about it

"Look see what did I tell you!!!111"  

Bragging about reduced gas prices due to the economy they fucked up. Beat that Trumpers!

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1 hour ago, f7ben said:

That’s what Trumpers did too

 

57 minutes ago, Anler said:

True. Its a competition for most retarded

 

36 minutes ago, f7ben said:

Yup

I fuggin' love it... :lmao:

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19 minutes ago, Snake said:

 

 

I fuggin' love it... :lmao:

there has been 1000 Trump retards per day making some idiotic comment about gas being $ .99 under Trump at the height of covid like it’s some gotcha. 

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15 minutes ago, f7ben said:

there has been 1000 Trump retards per day making some idiotic comment about gas being $ .99 under Trump at the height of covid like it’s some gotcha. 

no there hasn't

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sad part of it all is, eventually oil will likely drop significantly, maybe to where it was not long ago, where they could hardly get a bid on the open market, and gas will surely never go below $3.50/gallon ever again.

They've just created higher new lows.  Pathetic.

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25 minutes ago, hayward said:

sad part of it all is, eventually oil will likely drop significantly, maybe to where it was not long ago, where they could hardly get a bid on the open market, and gas will surely never go below $3.50/gallon ever again.

They've just created higher new lows.  Pathetic.

That’s how inflation works , prices never really come down 

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Reuters

Oil prices rebound from Tuesday tumble as supply concerns return

 
55307aafd6454a1fe05a23ece4914c99
 
FILE PHOTO: Crude oil storage tanks are seen from above at the Cushing oil hub in Cushing
Rowena Edwards
Tue, July 5, 2022 at 7:56 PM
 
 

By Rowena Edwards

LONDON (Reuters) -Oil prices rose on Wednesday, clawing back some of Tuesday's heavy losses as supply concerns returned to the fore and outweighed lingering worries about a potential global recession.

Brent crude futures rose by $1.43, or 1.39%, to $104.20 a barrel at 1120 GMT.

U.S. West Texas Intermediate (WTI) crude climbed 65 cents, or 0.65%, to $100.15 a barrel after closing below $100 in the previous session for the first time since late April.

Both contracts recorded their largest daily drop since March on Tuesday on recession fears and other bearish pressures, which also kept a lid on Wednesday's price rise.

Oil prices have seen a knock from a resurgent dollar, which is holding at a 20-year high against the euro and multi-month peaks against other major currencies.

A stronger U.S. dollar usually makes oil more expensive in other currencies, which could curb demand.

Renewed concerns of COVID-19 lockdowns across China could also cap oil price gains.

Adding to the downward pressure on prices, all oil and gas fields that were affected by a strike in Norway's petroleum sector are expected to be back in full operation within a couple of days, Equinor said on Wednesday.

Norway's government intervened to end the strike on Tuesday.

But analysts expect a quick resurgence in oil prices as supply tightness persists, pointing to front-month spreads which have held up despite Tuesday's price fall.

Brent's six-month market structure was in steep backwardation of $14.82 a barrel, little changed from the previous day. Backwardation exists when contracts for near-term delivery of oil are priced higher than those for later months.

"The price action overnight, with both contracts trading in near 15 dollar ranges, hints more at panic and forced liquidation, than a structural change in the tight supply-demand situation globally," said Jeffrey Halley, a senior market analyst at OANDA, adding that oil prices may be in danger of overshooting to the downside.

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