Oil posted its worst trading day in three months as fears of a global recession sent prices below
$100 U.S. a barrel.
West Texas Intermediate crude oil, the U.S. standard, closed below $100 U.S. yesterday (July
5) after dropping more than 8%, its biggest one-day decline since March 9 of this year.
West Texas Intermediate crude oil finished trading at $99.50 U.S. a barrel. Brent crude oil, the
international benchmark, fell $10 U.S. to close at $102.77 U.S. per barrel.
The latest drop came as stock prices continue to fall and the U.S. dollar rises as investors seek
safe haven assets with fears of a recession increasing.
At the same time, U.S. bank Citigroup (C) issued a report in which it said that crude oil prices
could fall to $65 U.S. this year in the event of a worldwide recession. Oil prices have been under
pressure in the past month as central banks continue to raise interest rates to lower inflation.
While oil futures have been pushed lower over concerns of a global economic slowdown,
demand remains strong for near-term supplies. A strike in Norway and supply disruptions in
Libya have added to the supply demand in recent days, according to industry data.
