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New drop in oil, estimates that it may fall to $ 100 before July 4

Oil prices continued to fall, falling more than 2% as investors reassessed their assessments of the risks of recession and fuel demand, amid rising interest rates in major economies.

West Texas Intermediate fell 2.7% to $ 103.46 a barrel, while Brent futures fell 2.3% to $ 109.22 a barrel.

Both crude futures for morning trading in Asia fell around $ 3 a barrel after falling 3% in the previous session. They are at their lowest levels since mid-May.

Investors continue to assess how worried they should be about central banks leading the global economy into recession as they try to curb inflation by raising interest rates.

“Oil markets remain under pressure as investors worry that US interest rate hikes could halt the economic recovery and reduce fuel demand,” said Fujitomi Securities chief analyst.

US and European hedge funds are leaving their positions ahead of the end of the second quarter, which is also slowing the investment climate, he said, predicting that the West Texas Intermediate could fall below $ 100 a barrel before 4th of July.

Source: Capital

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