U.S. oil prices fell in frenzied trading on Tuesday to their lowest settlement levels this year, with Brent finishing below $80 per barrel for the second time in 2022, as investors fled the volatile market in an uncertain economy.
Brent crude futures fell $3.33, or 4%, to settle at $79.35 a barrel. WTI crude futures fell $2.68, or 3.5%, to settle at $74.25 a barrel, their lowest settlement this year.
Prices have dropped by more than 1% for three straight sessions, giving up most of their gains for the year. A string of bearish news has unnerved investors despite an ongoing war in Ukraine and one of the worst energy crises in recent decades.
“It’s been quite the three days – with OPEC+ deciding not to further cut production on Sunday, the toothless start of the Russian price cap and sanctions yesterday, and a rout in equity markets today, oil speculators are charging for the exits amid a flight from risk assets,” said Matt Smith, lead oil analyst at Kpler.
