Oil Plummets Below $100 Per Barrel, A Day After Crashing 7 Per Cent On Demand Woes

Brent crude futures dropped 68 cents, or 0.7 per cent, to $98.81 a barrel. US West Texas Intermediate crude declined 72 cents, or 0.8 per cent, at $95.12, also the lowest in three months

Prices fell by more than 7 per cent in the prior session amid volatile trading.

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Amid rising fears of a global economic slowdown, crude oil prices dropped below $100 per barrel in early Asian trading on Wednesday, the Reuters reported. According to the report, the other reason for the decline in oil prices is build-ups in crude oil and refined products, US inventory data showed.

Brent crude futures dropped 68 cents, or 0.7 per cent, to $98.81 a barrel. US West Texas Intermediate crude declined 72 cents, or 0.8 per cent, at $95.12, also the lowest in three months.

Prices fell by more than 7 per cent in the prior session amid volatile trading.

The report mentioned that global investors have sold oil positions on worries that aggressive interest rate hikes to stem inflation will spur an economic downturn that will hit oil demand.

Fresh Covid-19 travel restrictions in China also weighed on the market. Several cities in the world's second-biggest economy have adopted curbs, from business shutdowns to broader lockdowns, in an effort to rein in new infections from a highly infectious sub-variant of the virus.

Meanwhile, crude stocks in the US rose by about 4.8 million barrels for the week ended July 8. Gasoline inventories rose by 3 million barrels, while distillate stocks rose by about 3.3 million barrels, according to market sources citing American Petroleum Institute figures on Tuesday.

On Tuesday, the dollar index, which tracks the currency against a basket of six counterparts, also climbed earlier in the day to 108.56, its highest level since October 2002.

Oil is generally priced in US dollars, so a stronger greenback makes the commodity more expensive to holders of other currencies.

During market volatility, investors also tend to view the dollar as a safe haven.