Oil extends its decline as growth concerns stoke mammoth drop
BNN Bloomberg
Oil extended its drop below US$100 a barrel as fears of a global slowdown outweighed continued supply disruptions and market tightness.
West Texas Intermediate fell as much as 4.4 per cent with Brent dropping below US$100 a barrel. The international benchmark dropped more than US$10 on Tuesday, its third-largest ever in dollar terms. Meanwhile, Citigroup Inc.’s Ed Morse said the outlook for oil demand will likely see further downward revisions amid higher fuel prices.
“Almost everybody has reduced their expectations of demand for the year,” Morse said in a Bloomberg Television interview Wednesday.
Oil has opened the third quarter on volatile footing. With central banks including the Federal Reserve hiking interest rates to tame inflation, investors have been pricing in the consequences of a slowdown, even as physical crude markets continue to show signs of vigor and the war in Ukraine drags on.
