New York (CNN)Oil prices dropped sharply on Wednesday, deepening a selloff that has already brought relief to drivers at the gas pump.
US oil tumbled 5.1% to $82.41 a barrel in recent trading. That’s the lowest intraday price since January 24. US crude is now down by more than one-third since briefly hitting $130 a barrel in early March.
Brent crude, the world benchmark, dropped below $90 a barrel for the first time since February 8. Brent was recently down 4.6% to $88.55 a barrel.
The selling comes just days after OPEC and its allies, known collectively as OPEC+, reversed course by cutting production to support prices.
Analysts cited a range of factors behind Wednesday’s losses, including concerns about the health of the world economy and the skyrocketing US dollar. A stronger US dollar tends to weaken demand for oil overseas.
“High prices are already starting to weigh on the European economy, and fears of contagion are causing a vicious selloff in oil prices today,” said Matt Smith, lead oil analyst Americas at Kpler.
The good news is that the drop in oil prices should continue to lower prices for consumers at the gas pump.
Since hitting $5.02 a gallon on June 14, the national average for regular gas has dropped 85 days in a row. A gallon of regular now fetches $3.76, down 31 cents over the past month, according to AAA. There are now 15 states averaging $3.50 or less, including North Carolina, Iowa and Florida.
Tom Kloza, global head of energy analysis at the Oil Price Information Service, is skeptical the drop in energy prices will continue — especially given recent threats from Russian President Vladimir Putin and other Kremlin officials, who have said they could retaliate against the West by cutting off energy exports.
“Putin has indicated he will do crazy things,” said Kloza. “This is an interlude, a buying opportunity. There’s a false sense of security.”
Responding to the oil price cap announced by the G7 on Russian crude, Putin said his country could reduce exports to zero.
“We will not supply anything at all if it is contrary to our interests, in this case economic ones,” Putin said Wednesday. “Neither gas, nor oil, nor heating oil — we will not supply anything.”
Another risk is that oil prices drop to levels that force OPEC+ to respond more forcefully by aggressively reining in production following Monday’s small output cut.
“OPEC+’s move was a not-so-veiled threat that they stand ready to defend prices,” Kloza said. “We are getting to numbers where the Saudis, Emirates and Kuwaitis would be willing to cut back on production.”
I do believe all the concepts you’ve introduced in your post. They are really convincing and can definitely work. Nonetheless, the posts are very quick for newbies. May you please lengthen them a bit from subsequent time? Thanks for the post.
Some genuinely wonderful information, Gladiola I discovered this. “The past is a guide post, not a hitching post.” by L. Thomas Holdcroft.
I am not positive the place you are getting your information, however great topic. I needs to spend a while finding out more or understanding more. Thank you for great info I used to be searching for this info for my mission.
I’m extremely inspired with your writing skills as well as with the format for your blog. Is that this a paid theme or did you modify it yourself? Either way keep up the nice high quality writing, it’s uncommon to look a great weblog like this one today..
I do accept as true with all the ideas you’ve presented in your post. They’re very convincing and can definitely work. Still, the posts are too short for novices. Could you please extend them a bit from subsequent time? Thanks for the post.
Your place is valueble for me. Thanks!…
An interesting dialogue is value comment. I believe that it’s best to write more on this topic, it won’t be a taboo topic however typically individuals are not sufficient to talk on such topics. To the next. Cheers
Wonderful blog! I found it while browsing on Yahoo News. Do you have any suggestions on how to get listed in Yahoo News? I’ve been trying for a while but I never seem to get there! Cheers
Good V I should certainly pronounce, impressed with your website. I had no trouble navigating through all the tabs and related info ended up being truly simple to do to access. I recently found what I hoped for before you know it at all. Reasonably unusual. Is likely to appreciate it for those who add forums or something, web site theme . a tones way for your customer to communicate. Excellent task..
Whats up very nice web site!! Guy .. Beautiful .. Wonderful .. I will bookmark your blog and take the feeds additionallyKI’m happy to seek out numerous helpful information right here within the publish, we want develop extra strategies in this regard, thanks for sharing. . . . . .
Woh I enjoy your blog posts, saved to favorites! .
That is the fitting weblog for anyone who wants to search out out about this topic. You understand so much its nearly arduous to argue with you (not that I truly would want…HaHa). You positively put a brand new spin on a topic thats been written about for years. Nice stuff, just nice!
Some genuinely rattling work on behalf of the owner of this web site, dead outstanding content.
It’s hard to find knowledgeable people on this topic, but you sound like you know what you’re talking about! Thanks
As a Newbie, I am constantly searching online for articles that can aid me. Thank you
Do you mind if I quote a few of your posts as long as I provide credit and sources back to your blog? My blog site is in the very same niche as yours and my users would definitely benefit from some of the information you provide here. Please let me know if this ok with you. Many thanks!
Thank you for the sensible critique. Me and my neighbor were just preparing to do a little research on this. We got a grab a book from our local library but I think I learned more clear from this post. I’m very glad to see such excellent information being shared freely out there.
Sweet site, super design and style, rattling clean and employ pleasant.
Thank you, I’ve recently been searching for info approximately this topic for a long time and yours is the greatest I’ve discovered till now. But, what concerning the bottom line? Are you sure about the source?
Incredible! This blog looks just like my old one! It’s on a completely different topic but it has pretty much the same layout and design. Excellent choice of colors!
Does your blog have a contact page? I’m having a tough time locating it but, I’d like to send you an e-mail. I’ve got some creative ideas for your blog you might be interested in hearing. Either way, great blog and I look forward to seeing it improve over time.
Excellent site. Lots of helpful info here. I’m sending it to a few friends ans also sharing in delicious. And naturally, thanks for your effort!
You made some respectable points there. I looked on the internet for the problem and located most people will go together with along with your website.
Hey very cool site!! Man .. Beautiful .. Amazing .. I will bookmark your website and take the feeds also…I am happy to find numerous useful information here in the post, we need work out more strategies in this regard, thanks for sharing. . . . . .
I appreciate your work, thankyou for all the great posts.
I will right away grasp your rss as I can’t in finding your e-mail subscription hyperlink or newsletter service. Do you’ve any? Please let me understand so that I may subscribe. Thanks.
F*ckin¦ awesome things here. I am very glad to peer your article. Thanks so much and i’m looking ahead to contact you. Will you please drop me a e-mail?
Magnificent site. A lot of helpful information here. I?¦m sending it to several buddies ans additionally sharing in delicious. And obviously, thank you in your effort!
Hmm it seems like your website ate my first comment (it was super long) so I guess I’ll just sum it up what I submitted and say, I’m thoroughly enjoying your blog. I too am an aspiring blog blogger but I’m still new to everything. Do you have any suggestions for newbie blog writers? I’d definitely appreciate it.
An interesting discussion is worth comment. I think that you should write more on this topic, it might not be a taboo subject but generally people are not enough to speak on such topics. To the next. Cheers
Great beat ! I wish to apprentice at the same time as you amend your website, how can i subscribe for a weblog site? The account helped me a acceptable deal. I have been tiny bit familiar of this your broadcast offered brilliant transparent concept