https://sputnikglobe.com/20220712/oil-tumbles-8-in-second-major-drop-in-a-week-that-sends-barrel-below-100-1097247200.html
Oil Tumbles $8 in Second Major Drop in a Week That Sends Barrel Below $100
Oil Tumbles $8 in Second Major Drop in a Week That Sends Barrel Below $100
Sputnik International
NEW YORK (Sputnik) - Crude prices tumbled more than $8 a barrel at the height of Tuesday’s selloff after the dollar’s surge to a two-decade peak and new social... 12.07.2022, Sputnik International
2022-07-12T18:44+0000
2022-07-12T18:44+0000
2022-07-12T18:44+0000
us
oil
opec
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New York-traded West Texas Intermediate (WTI) crude was down $8.16, or almost 8%, to $96.30 a barrel by 2:00 PM ET (18:00 GMT). The US crude benchmark plumbed a session low $95.83, after losing more than $8 at one point. It was the second major drop in WTI since a $10 drop the previous Tuesday. WTI has also lost more than 9% since the start of July.London-traded Brent crude was down $7.31, or 6.8%, to $99.79, after a session bottom of $99.48. The US crude benchmark has lost more than 8% since this month began.The Dollar Index, which pits the US currency against six other majors, hit its highest since 2002, reaching almost 109 points. The dollar has rallied with few stops since November on bets that the Federal Reserve will aggressively raise US interest rates through 2022 and past spring of next year to tame inflation growing at its fastest in four decades.A stronger dollar typically makes commodities priced in the currency, which includes crude, more expensive for non-dollar holders.In China, coronavirus measures put in place to curb more infections from the highly infectious BA.5.2.1 subvariant of the Omicron led to fears over growth and demand for oil in the world’s second largest economy.This month’s selloff in oil has placed global oil exporters’ alliance OPEC+ in a spot it hasn’t been in for most of this year.After a 17% drop in November, Brent tacked on a compounded 54% between December and May, rallying six months non-stop mostly on the Western sanctions imposed on Russia over the Ukraine conflict.That uptrend was broken finally by June’s near 6% drop on fears of a potential US recession. July’s declines have added to the downward momentum, with Brent’s $99.31 low on Tuesday coming almost 30% below its March peak of $139 that technically placed it in a bear market.The White House on Monday pressured OPEC+ to put out even more oil, saying it believed the 23-nation oil exporters alliance had the capacity to do so.
https://sputnikglobe.com/20220712/russian-oil-price-cap-fraught-with-technical--diplomatic-challenges-us-treasury-concedes-1097213356.html
https://sputnikglobe.com/20220712/opec-keeps-forecast-on-2022-world-oil-demand-growth-unchanged-1097226945.html
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Oil Tumbles $8 in Second Major Drop in a Week That Sends Barrel Below $100
NEW YORK (Sputnik) - Crude prices tumbled more than $8 a barrel at the height of Tuesday’s selloff after the dollar’s surge to a two-decade peak and new social and business restrictions put in place by China to fight fresh coronavirus infections from the Omicron subvariant threatened to send oil below $90 a barrel.
New York-traded West Texas Intermediate (WTI) crude was down $8.16, or almost 8%, to $96.30 a barrel by 2:00 PM ET (18:00 GMT). The US crude benchmark plumbed a session low $95.83, after losing more than $8 at one point. It was the second major drop in WTI since a $10 drop the previous Tuesday. WTI has also lost more than 9% since the start of July.
London-traded Brent crude was down $7.31, or 6.8%, to $99.79, after a session bottom of $99.48. The US crude benchmark has lost more than 8% since this month began.
"Seven percent down moves in a day is big," John Kilduff, partner at New York energy hedge Again Capital, said in an email seen by Sputnik, where he referred to Tuesday’s action. "Will some of this get retraced? I have to believe that. But we have a nice downtrend. The two-day moving average is in the neighborhood of $88."
The Dollar Index, which pits the US currency against six other majors, hit its highest since 2002, reaching almost 109 points. The dollar has rallied with few stops since November on bets that the Federal Reserve will aggressively raise US interest rates through 2022 and past spring of next year to tame inflation growing at its fastest in four decades.
A stronger dollar typically makes commodities priced in the currency, which includes crude, more expensive for non-dollar holders.
In China, coronavirus measures put in place to curb more infections from the highly infectious BA.5.2.1 subvariant of the Omicron led to fears over growth and demand for oil in the world’s second largest economy.
This month’s selloff in oil has placed global oil exporters’ alliance OPEC+ in a spot it hasn’t been in for most of this year.
After a 17% drop in November, Brent tacked on a compounded 54% between December and May, rallying six months non-stop mostly on the Western sanctions imposed on Russia over the Ukraine conflict.
That uptrend was broken finally by June’s near 6% drop on fears of a potential US recession. July’s declines have added to the downward momentum, with Brent’s $99.31 low on Tuesday coming almost 30% below its March peak of $139 that technically placed it in a bear market.
The White House on Monday pressured OPEC+ to put out even more oil, saying it believed the 23-nation oil exporters alliance had the capacity to do so.
"We do believe there is a capacity for further steps that could be taken," White House National Security Advisor Jake Sullivan said days before US President Joe Biden is set to visit the Middle East, where he will hold talks with leaders of the top OPEC oil producers.
