Oil Falls to Three-Month Low as Recession Fears Spook Market
- China battling renewed Covid-19 outbreaks across the country
- Dollar trades near highest level since 2020, pressuring oil
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Oil tumbled as concerns about a global economic slowdown and growing Covid-19 cases in China reduced traders’ appetite for risk.
West Texas Intermediate shed more than 8% to settle under $96 a barrel for the first time since early April. Rising virus cases in China and looming US inflation data are stoking concerns about demand. Meanwhile, dwindling liquidity is also exacerbating price moves. Money managers have become more bearish on the main oil benchmarks, cutting their net-long positions last week to the lowest since 2020.