Brent crude settles below $100/bbl on higher dollar, weak demand outlook | Reuters
Global benchmark Brent crude tumbled $7 on Tuesday to settle below $100 a barrel for the first time in three months on a strengthening dollar, demand-sapping COVID-19 curbs in top crude importer China, and rising fears of a global economic slowdown.
The sharp drop followed a month of volatile trading in which investors have sold oil positions on worries that aggressive interest rate hikes to stem inflation will spur an economic downturn that will pull the rug out from oil demand.
Brent crude futures settled $7.61, or 7.1% lower, at $99.49 a barrel, its lowest since April 11. U.S. West Texas Intermediate crude was down $8.25, or 7.9%, at $95.84, also the lowest in three month.
"I think it's pretty critical just from a psychological point that we hold at $95 a barrel," said Rebecca Babin, senior energy trader at CIBC Private Wealth US.
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