Oil Drops as Hawkish Powell Testimony Amplifies Recession Fears
- Commitment to fight inflation is “unconditional”: Powell
- Crude remains volatile as open interest drops to six-year lows
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Oil dropped as Federal Reserve Chair Jerome Powell’s testimony before a House committee heightened concerns of an impending recession.
West Texas Intermediate dropped to near $104 a barrel, with prices having shed more than 10% in the last week. Powell said his commitment to fight inflation is “unconditional.” Warnings about a potential recession and economic slowdown have overshadowed oil market fundamentals that indicate a growing supply crunch. Crude’s recent swings have been too volatile for many traders. Open interest across the main futures contracts has fallen to the lowest since 2015 in recent days.