The price of Petroleum Texas Intermediate (WTI) collapsed on Tuesday due to fears of an economic recession and lost the $100 barrier a few hours after the closing of the trading session.
As of 11:40 am New York time, WTI futures for August delivery were down more than 9% to settle at $98.42 a barrel.
It is the first time since May 11 that the reference oil in the United States is trading below $100as a result of a sharp decline that analysts link to the growing fear of a recession that could damage the demand for crude oil.
Those fears already caused the price of WTI to end June with losses after six consecutive months on the rise and they seem to be increasing now. This Tuesday, the Citi bank warned that the price of oil could collapse with a recession and place a barrel of Brent at around $65 by the end of the year and around $45 by the end of 2023, when it is now around $113.
The price of crude oil soared this year, especially after the Russian invasion of Ukraine, and many experts had so far predicted that it would remain high.
Last Friday, the barrel of WTI had closed at $108.43, while this Monday there was no official data as it was a holiday in the United States.