Oil price plummets nearly $12

It is biggest daily drop since March amid recession fears


REUTERS July 06, 2022
The EU imported more than a quarter of its oil from Russia before the war and has been accused of not moving fast enough to stop funds flowing to Moscow's war machine. PHOTO: AFP

NEW YORK:

Oil plummeted nearly $12 a barrel on Tuesday in the biggest daily drop since March and the decline spread to other energy sectors amid worries of a global recession.

Benchmark Brent crude was down $11.88, or 10.4%, at $101.83 a barrel by 1645 GMT. US West Texas Intermediate (WTI) crude settled at $99.50 a barrel, falling 8.2%, or $8.93 a barrel. There was no WTI settlement on Monday because of a US holiday.

Both benchmarks logged their biggest daily percentage decline since March 9 and hit share prices of major oil and gas companies. Prices hit the lowest since late-April. “We’re getting creamed and the only way you can explain that away is fear of recession,” said Mizuho Director of Energy Futures Robert Yawger. “You’re feeling the pressure.”

Oil futures sank along with natural gas, gasoline and equities, which often serve as demand indicator for crude. In China, Shanghai said it would begin new rounds of mass Covid-19 testing of its 25 million residents, reigniting worries about potential lockdowns.

Published in The Express Tribune, July 6th, 2022.

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