Bloomberg: Oil’s New Year Slump Deepens Below $75 as China Concerns Grow
(Bloomberg) -- Oil’s rough start to the year worsened as a deteriorating demand outlook came to the fore, buttressed by China’s near-term struggles with Covid-19, milder winter weather and US refinery disruption.
West Texas Intermediate fell as much as 3.5% to below $75 a barrel after posting a 4.2% drop on Tuesday, the most since November. Brent, the global benchmark, slid below $80 on Wednesday.
A rising death toll in China following the swift easing of virus curbs is overwhelming crematoriums, and there are warnings of more casualties heading into the Lunar New Year.
Above-average temperatures in the US and Europe, meanwhile, are easing fears of an energy crunch.
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Update #1: Oil dives 4%, trade choppy on worries about China, global economy (Reuters).
Update #2: Oil Prices Plunge Below $80 As Near-Term Demand Worries Grow (OilPrice.com)
WNU Editor: This is a short term drop. The 2023 forecast for oil prices is to continue to rise .... UBS sees oil prices topping $100 per barrel this year (UPI).
Record warmth in Europe and gas prices dropping like a rock… poor Russia all their plans up in smoke..
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