By Ediri Ejoh
In a continued counter-rally oil prices finally plunged below $100 per barrel for the first time in about three months now.
Brent crude, the global oil benchmark, dipped 3.28 percent to trade at $99.40 a barrel, while West Texas Intermediate (WTI) crude plunged 4.21 percent to $95.31 a barrel.
This followed early week price declines which recorded a massive plunge to $101 on Tuesday from over $113 opening price.
Oil and gas prices surged earlier this year after Russia’s invasion of Ukraine prompted the United States and its European allies to sanction Russian energy exports, effectively choking off one of the world’s largest producers.
Goldman Sachs attributed the fall in the price of the commodity to growing recession fears.
Also OPEC had in its June 2022 Monthly Oil Market Report, MOMR, pumped 28.52 million barrels per day (bpd) in June, down 100,000 bpd from May’s revised total thus failing to deliver on an oil output increase pledged under a deal with allies.
This follows as involuntary declines in Nigeria and Libya offset supply increases by Saudi Arabia and other large producers, says Reuters survey.
Nigeria recorded a decline of 80,000 bpd, where outages and maintenance curbed output.