Houston — The global oil benchmark fell below $ 100 a barrel for the first time since late April on Wednesday as fears of an impending recession spread among traders.
Oil prices, which rose above $ 120 a barrel just a month ago, have fallen in the last two weeks, but have been accelerating recently.
Energy experts say there have been no fundamental changes in the energy markets, except for some signs that fuel sales may be slowing in the United States, which is cultivating the perception that the economy is slowing. rice field. Prices for metals and other commodities are also dropping.
“When the recession becomes a reality and inflation continues to push up almost all prices, oil demand will almost certainly fall, and prices will go down,” said Louise Dixon, senior analyst at analytics firm Listad Energy. It will rise. “
There is a sharp disagreement among experts about where oil prices will go weeks or months ahead. Prices ultimately depend on how severe the final recession is and how strong China’s demand will grow as the country exits the Covid pandemic.
There are no signs that the Russian war in Ukraine will end soon, and despite tightened Western sanctions, Russia’s oil exports are stronger than many analysts expected. A shortage of natural gas in Europe next winter will force utilities to burn more oil, squeezing supply and potentially raising oil prices.
The price of Brent crude, the global oil benchmark, fell 3% on Wednesday to $ 99.61. The American benchmark West Texas Intermediate fell 1% to $ 98.53 a barrel.
Gasoline prices are also declining, but the pace is slowing as pump prices usually take a week or two to get a complete picture of oil prices. Oil goes through several stages of processing and marketing before it arrives at a gas station.
The national average price of regular gasoline on Wednesday fell 2 cents to $ 4.78 a gallon, 9 cents lower than a week ago. The average gas price exceeded $ 5 per gallon about three weeks ago. Drivers pay an average of $ 1.65 more per gallon than they did a year ago.
The refinery’s capacity is almost inadequate, especially if the United States is sending more fuel to Europe to compensate for the decline in Russian imports. Experts warn that if a hurricane hits the Gulf of Mexico, damage to refineries could lead to higher gas and diesel prices.
Oil inventories, which had been strong all year round, are plummeting. Hess and Marathon oil stocks fell more than 2 percent on Wednesday.