Brent crude has fallen below $100 a barrel for the first time in three months, following a month of volatile trading that has pushed prices down in the face of expected economic slowdown.
Brent crude futures settled at $99.49 a barrel, a $7.61 drop and the lowest price since April 11th. The strengthening dollar and Covid-related restrictions imposed by major importer China have also played a significant role in the fall.
Since peaking in March, Brent prices have dropped by 29%.
Fears of an upcoming recession have seen investors move their money away from petroleum-related derivatives at a startling rate.
US President Joe Biden is set to call for increased oil production from OPEC when he meets Gulf leaders in Saudi Arabia this week, White House national security adviser Jake Sullivan has confirmed. Industry experts however question the ability of producing nations to increase output to the levels desired by the White House, with most producers already operating at maximum capacity.
The US Energy Information Administration (EIA) has projected an increase in US crude production and petroleum demand in 2022 as the economy continues to grow and the country seeks to provide alternatives to Russian oil.
US Treasury Secretary Janet Yellen is currently in Asia discussing potential new sanctions against Russia, including a price cap on Russian oil to limit the Kremlin’s ability to fund its military operations and help lower energy prices.