Price of Brent crude oil dropped to $99.78 amidst fears over global economic recession.
The fall in crude oil price below $100 was the first in the last 15 months after Brent crude entered into the bulls territory, which Citigroup said is being driven by overpriced sentiment among investors.
Brent’s bullish run shows that the commodity was overbought.
This means that the product was selling above its natural price that had been put at $70 per barrel by the American firm in its oil market notice.
Citigroup had expressed a negative look for the future, stating that Brent would still sell for as low as $65 within the next six months, and went as far as projecting $45 per barrel as the product’s asking price before the end of 2023.
Aside from Brent crude, the United States West Texas Intermediate (WTI) also slumped this evening Nigerian time, trading at a low of $96.31, but now sells at $98.74 per barrel.
Ripples Nigeria reported earlier on Wednesday that Brent crude oil was projected to fall due to global recession induced by inflation in the global market.
The economic downturn is expected to cripple fuel demand.
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