Oil prices fell to a 12-week low on July 6, 2022

Oil prices fell to a 12-week low in volatile trading on Wednesday, continuing Tuesday's plunge as fears of demand disruption from the global recession outweighed fears
of supply, OE reported on July 6.

As of 10:57 a.
m.
ET (14:57 GMT), Brent LCOc1 futures delivered in September were down $2.
99, or 2.
9 percent, to $99.
78 a barrel, while the U.
S.
West Texas Intermediate (WTI) crude was down $3.
19, or 3.
2 percent, to $
96.
31.

That puts WTI and Brent crude on track to hit their lowest closing levels since April 11, after Brent crude and WTI crude fell 9% and 8%
respectively on Tuesday.

This also leaves both benchmarks in the technically oversold zone, with the Relative Strength Index (RSI) falling below 30
for the second consecutive day.
If Brent crude closes at this level, it will be the first time since December 2021 that it is in oversold range
in two days.

Investment bank Goldman Sachs said the oil sell-off was due to heightened
fears of a recession.

German government borrowing costs fell to a five-week low as growing concerns about a gloomy economic outlook prompted investors to buy safe-haven bonds
.

U.
S.
stock indexes slipped
Wednesday as investors waited for the Fed minutes to assess the health of the economy and the pace of rate hikes to curb a spike in inflation.

Oil prices have also been affected by the appreciation of
the US dollar.
The dollar index rose to a nearly 20-year high against a basket of
other currencies.

A stronger dollar has made oil more expensive for those who hold other currencies, which could dampen demand
.