Oil Prices Slide to 12-week Low on Fears of Global Recession

Trade was volatile, with both crude benchmarks up over $2/bbl early on supply concerns and down over $4/bbl at session lows. Oil prices have been extremely volatile for months.

Scott DiSavino, Reuters

Oil prices slid about 2% to a 12-week low in volatile trade on July 6, extending the prior session’s heavy losses as investors grew more worried energy demand would take a hit in a potential global recession.

Looking ahead, analysts polled by Reuters forecast U.S. crude inventories fell about 1.0 million barrels last week. A drop in crude stockpiles could support prices.

API, an industry group, will issue its inventory report at 4:30 p.m. EDT (2030 GMT) on July 6. The U.S. Energy Information Administration (EIA) reports at 11 a.m. EDT (1500 GMT) on July 7. Both reports were delayed one day by the U.S. July Fourth holiday.

Brent futures for September delivery fell $2.08, or 2.0%, to settle at $100.69/bbl. WTI crude in the U.S. fell 97 cents, or 1.0%, to settle at $98.53. Both benchmarks closed at their lowest since April 11, in technically oversold territory for a second straight day.

U.S. diesel futures also fell over 5%.

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