The price of West Texas Intermediate crude fell nearly 10% on Tuesday, falling below $98 a barrel. Brent crude fell more than 10% to below $102 a barrel.
This is the first time WTI has been below $100 since May 11. It was also the last time Brent, which normally trades slightly higher, was below $102 a barrel. Brent fell to $101.10 a barrel in afternoon trade on Tuesday before regaining some of that decline. But it was still below the $102 mark, down from Monday’s close of $113.50 a barrel. Brent has not been below $100 since April 25.
Wholesale gas futures also fell, falling 35 cents a gallon in midday trade, or 9% on the day.
The national average price of a gallon of gas at the pump is now $4.80, according to AAA’s latest reading, down a penny from Monday and 8 cents from a week ago. Gasoline prices peaked at $5.02 a gallon on June 14.
Growing fears about the chances of a recession are the main driver of the recent selloff in oil and gasoline futures, said Tom Kloza, global head of energy analysis for OPIS.
Until recently, investors in oil and gasoline believed that market forces could not keep prices under control in the near term. “There is now a huge perceived downside risk associated with the risk of a recession,” he said.
This story is evolving and will be updated.
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