Oil Slumps 5% on Recession Concerns, US Gasoline Price Drop

With the Fed expected to keep raising interest rates, open interest in WTI futures on the Nymex fell on June 16 to its lowest since May 2016 as investors cut back on risky assets.

Scott DiSavino, Reuters

Oil prices tumbled about 5% to a three-week low on June 17, led by a slump in U.S. gasoline futures, as investors worried interest rate hikes from major central banks could slow the global economy and cut demand for energy.

Also pressuring prices, the U.S. dollar this week rose to its highest since December 2002 against a basket of currencies. A stronger dollar makes oil more expensive for buyers using other currencies.

Brent futures fell $5.85, or 4.9%, to $113.96/bbl by 11:02 a.m. EDT (1502 GMT). WTI crude in the U.S. fell $6.66, or 5.7%, to $110.93. Both were on track for their lowest closes since May 25.

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