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Oil prices tumbled Tuesday with the U.S. benchmark falling below $100 as recession fears grow, sparking fears that an economic slowdown will cut demand for petroleum products (CNBC). But slightly recovered as supply concerns returned back to normal today.
Citi said Tuesday that Brent could fall to USD 65 by end of this year should the economy tip into a recession. “In a recession scenario with rising unemployment, household and corporate bankruptcies, commodities would chase a falling cost curve as costs deflate and margins turn negative to drive supply curtailments,” the firm wrote in a note to clients. (CNBC)