Oil plunged for a second day, dipping below $70 a barrel in New York as the prospect of a US recession triggered a flight from riskier assets and threatened to curb fuel demand.
Just days after OPEC+ began cutting production in an effort to stabilize crude markets, there was little indication that the group was having any success. Oil futures fell to the lowest since March, when the first tremors of a banking crisis were sending prices into a tailspin. There was renewed anxiety on Wednesday over financial stability in the US as well as signs of a cooling labor market.
“Fears of a wider economic slowdown” are driving the market, Joe DeLaura, senior energy strategist at Rabobank, said in a note. Brent crude, which was trading near $80 a barrel on Tuesday, will be the next to test $70, he said.
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