Outburst! International oil prices plunged 10%

According to Xinhua News Agency, international oil prices plunged
on July 5 as market fears of recession intensified.
By the close of the day, light crude futures for August delivery on the New York Mercantile Exchange fell $8.
93, or 8.
24%, to settle at $99.
50 a barrel; London Brent crude futures for September delivery fell $10.
73, or 9.
45%, to settle at $102.
77 a barrel
.

The price of New York light crude oil futures for August delivery fell as low as $97.
43 per barrel on the day, with a maximum decline of 10.
14%; London Brent crude futures for September delivery fell as low as $101.
10 a barrel during the session, the biggest drop of 10.
93%.

▼WTI fell below $100 at one point

Citigroup predicted in a report released on the 5th that if the global economy falls to a recession level this year, the price of Brent crude oil futures may fall to $
65 per barrel by the end of this year.

Oil prices could fall to $65 a barrel by the end of the year and $45 a barrel by the end of 2023
, according to Citigroup.

Recession fears have sent oil prices down
twice in recent weeks.
International oil prices fell in June for the first time in eight months
.

"In the case of oil, historical evidence suggests that oil demand will only go negative during the worst of the global recession," Citi analysts wrote in the note, "but in all recessions, oil prices fall roughly to marginal cost
.
" ”

Analysts at Citi have warned that oil could collapse in the event of a recession, but the U.
S.
economy is not expected to fall into recession
for now.

Ed Morse, Citi's head of global commodity research, has been bearish on oil for months, saying in June that crude oil is overvalued a lot and should be around
$70.