The price of a barrel of Brent oil fell momentarily below 100 dollars on Wednesday for the first time since April, and WTI settled below that level, affected by fears of a possible global economic recession.
Brent for September delivery lost 2.02% in London to settle at $100.69 after dipping below $100 for the first time since April.
Meanwhile, the West Texas Intermediate (WTI) for August fell 0.97%, installed since Tuesday below the level of 100 dollars, now at 98.53 at the close. On Tuesday, the two barrels collapsed.
It was for Brent “the third biggest drop in absolute numbers since the forward contract began trading in 1988,” the UBS analysts said. Brent lost 9.45% at the close, but lost almost 11%.
“These falls are due to fears that a recession will destroy demand, which is beginning to fall due to high prices” for crude oil, summed up Andy Lipow of Lipow Oil Associates.
Citi analysts predict that the price of a barrel of Brent could touch 65 dollars this year in a scenario of prolonged recession.
They point out meanwhile that no fundamental changes have disrupted the market since Tuesday. The supply of black gold remains closely watched, with production interruptions in some countries.
