The fall marks its lowest point in two weeks as the demand outlook was pressured by increasing recession risks and Covid-19 lockdowns in China. Additionally, a strong US dollar made crude oil more costly for buyers purchasing in other currencies.
US West Texas Intermediate crude oil was down 3.2% to $99.76 a barrel, while Brent crude dropped 3.28% to $102.46 a barrel.
Also on Tuesday, French President Emmanuel Macron and Hungarian Prime Minister Viktor Orban discussed energy security amid EU efforts to persuade Hungary to agree to proposed sanctions on oil imports from Russia.
“These are volatile times, the daily price bars are outsized these days,” commented John Kilduff, a partner at Again Capital LLC. “As the EU continues to dither over whether or not they are going to embargo Russian oil, that changes the calculus very much as well in both directions.”