- Oil prices fell Tuesday as Wall Street weighed recession worries and a stronger dollar.
- West Texas Intermediate crude sank 8.6% to $99.12 per barrel, and Brent crude tumbled 9% to $103.17.
- The plunge in oil comes as Citibank warned Tuesday oil could dip as low $65 on weak demand.
Oil fell sharply Tuesday as recession fears reverberated throughout Wall Street and the US dollar rallied.
West Texas Intermediate crude sank 8.6% to $99.12 per barrel, dipping below $100 per barrel for the first time since April. Brent crude tumbled 9% to $103.17.
Oil's latest slump comes as Citibank warned Tuesday that prices could sink further to a low of $65 per barrel if global demand slows.
In addition, the dollar rose Tuesday and has strengthened recently as the Federal Reserve has staunchly raised interest rates in response to 40-year high inflation.
Still, oil is fetching a high prices in some markets. Saudi Arabia's state-run producer said Tuesday it would raise prices next month for its Asian buyers.
Meanwhile, gasoline prices have decreased for 21 consecutive days, according to AAA data — that's good for their longest losing streak since April 2020, in the early part of the COVID-19 pandemic.
The current average for gas prices in the US is $4.800 per gallon, down from $4.881 a week ago, but still elevated compared to the year-ago average of $3.134.
The recent market trends bode well for President Joe Biden as he faces limited policy options on lowering fuel costs. His recent proposal to suspend the federal gas tax was quickly dismissed. And the oil industry has been focused on returning capital to shareholders, despite Biden's calls for companies to ramp up investment and production more quickly.