Oil’s Latest Slump: Goodbye Inflation Trade, Hello Recession
- US crude futures fell below $100 for the first time since May
- Market remains vulnerable to big moves amid liquidity crunch
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For much of 2022, oil steadily rallied as investors piled into bets that the world’s most liquid commodity would surge as inflation climbed. On Tuesday, the trade showed its clearest signs yet of unraveling.
Brent futures plunged by more than $10 a barrel, succumbing to the third-largest daily retreat on record. West Texas Intermediate fell below $100 for the first time since May 11. Prices slumped again on Wednesday.