OP: Brent tumbles below $110 as fears of recession intensify

Oilprice.com reports:

Oil prices dipped by 6 percent early on Wednesday, with Brent slumping below $110 a barrel, as the market fears a looming recession would drive down global oil demand.  

As of 9:10 a.m. EST on Wednesday, WTI Crude was down below the $105 a barrel mark and traded at $102.77, down by 6.24 percent on the day. The international benchmark, Brent Crude, had plunged below the $110 threshold and was at $108.18, down by 5.70 percent.  

A growing number of analysts and economists now say that the Fed’s attempts to rein in inflation with aggressive interest rate hikes may not produce the policy makers’ goal of a “soft landing” of the U.S. economy and will actually lead to a recession within a year or a year and a half.

Moreover, the strong U.S. dollar is also weighing on oil prices, as a strong greenback makes oil purchases more expensive for holders of other currencies. A rising U.S. dollar could impact the level of imports at oil-importing countries.

The Biden Administration – locked in a dispute with the U.S. oil industry over whose fault $5 a gallon gasoline price in America is – is pushing for a temporary federal gas tax holiday, also likely weighing on oil prices…

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