Oil prices declined to the lowest point in almost six months, caused by weakening gasoline demand and recessionary fears weighing down markets. Bloomberg says West Texas Intermediate fell to $87.78 a barrel, a level last seen during the weeks before Russia invaded Ukraine.
The price drop this week was jump-started by government data showing Americans are driving less than they did in the summer of 2020. Fears of a slowing economy have intensified along with the potential impacts on crude demand. One senior market analyst says prices falling under $90 a barrel is “quite remarkable” given how tight the market is and how little relief is in store.
Crude oil has now given up all of the gains triggered by the Russian invasion of Ukraine. Since it peaked at more than $130 a barrel, the benchmark has dropped due to signs that Moscow is still getting its oil cargoes onto the global market.