Oil futures fell sharply on Tuesday as prices fell below $100 a barrel, their lowest level in more than two months. This came under pressure from a stronger US dollar and fears of a possible recession that would hurt energy demand.
“The drop in WTI was inevitable as the market rebalances as fears of sanctions give way to the realities of sales from Russia to new buyers in Asia, and the impact of high prices on demand and the economy becomes more evident ,” said Michael Lynch, President Strategic Energy & Economic Research.
West Texas Intermediate crude for August delivery fell $8.93, or 8.2%, to $99.50 a barrel on the New York Mercantile Exchange, the lowest since April.