Brent and WTI oil prices have fallen below the key psychological $100 mark.
The selloff has been so deep that prices have crashed all the way along the futures curve.The oil bulls are in for a rough ride as the oil price crash shows no signs of reversing. Brent and WTI crude have both tumbled below $100/bbl for the first time in months as fears of a global economic slowdown as well as an overly strong dollar continue to rout commodities and stocks.
The latest selloff has extended the energy sector's losing streak and plunged it into bear territory for the first time in months. It has also reversed a recent trend where the sector was outperforming all other 10 market sectors to a situation where it's underperforming virtually everything. The selloff has been so deep that prices have crashed all the way along the futures curve. For instance, Brent for December 2023 shed 8.
That said, the closely watched physical oil markets that give important clues to supply-demand trends have largely remained unchanged, with supply remaining tight and demand still high. Physical barrels are still fetching huge premiums over their benchmarks, so much so thatjust hours before the plunge in futures. Meanwhile, prices of diesel and gasoline remain well above crude, giving refineries a big incentive to buy barrels.
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