Tuesday marked the first time since January that global oil prices fell below $80 per barrel, continuing a downward trend as rising concerns over global demand offset the optimistic effects of an EU-led price cap on Russian oil sales.
Brent crude futures fell 4.03% to $79.35 a barrel, the lowest since January 4. West Texas Intermediate crude (WTI) fell 3.48% to $74.26 after reaching its lowest level this year.
For three days in a row, oil prices have fallen by over 1%, wiping off most of this year’s gains. Even though the war in Ukraine is still going on and the energy crisis is one of the worst in decades, investors have been rattled by a string of negative news.
“It’s been quite the three days – with OPEC+ deciding not to further cut production on Sunday, the toothless start of the Russian price cap and sanctions yesterday, and a rout in equity markets today, oil speculators are charging for the exits amid a flight from risk assets,” said Matt Smith, lead oil analyst at Kpler.
Brent and WTI futures fell the most in two weeks on Monday after U.S. services industry data indicated a solid U.S. economy, fueling predictions of higher interest rates than previously expected.