Oil takes fresh hit as recession angst scars commodities
BNN Bloomberg
Oil fell again, along with other key commodities, as concerns over a global economic slowdown intensified, with Federal Reserve Chair Jerome Powell warning that a US recession is possible.
West Texas Intermediate sank toward US$104 a barrel after closing at a six-week low on Wednesday. The US benchmark has lost more than 15 per cent since June 8 as warnings about the world’s economy grow steadily louder, drowning out signs the oil market remains tight.
Powell said while he didn’t see the likelihood of a recession as particularly elevated, it was a possibility. Commodity price rises “clearly” were connected to the war in Ukraine, he said.
Crude’s retreat has been accompanied by a renewed liquidity malaise exacerbating market volatility. Open interest across the main futures contracts has fallen to the lowest since 2015 in recent days.
