Oil fell sharply Tuesday as recession fears reverberated throughout Wall Street and the US dollar rallied.
West Texas Intermediate crude sank 8.6% to $99.12 a barrel, dipping below $100 a barrel for the first time since April. Brent crude tumbled 9% to $103.17.
Oil's latest slump came as Citibank said Tuesday that prices could sink further to a low of $65 a barrel if global demand slowed.
The dollar rose Tuesday and has strengthened recently as the Federal Reserve has raised interest rates in response to 40-year-high inflation.
Still, oil is fetching a high price in some markets. Saudi Arabia's state-run producer said Tuesday it would raise prices next month for its Asian buyers.
Meanwhile, gasoline prices have decreased for 21 consecutive days, according to AAA data — that's good for their longest losing streak since April 2020, in the early part of the COVID-19 pandemic.
The average for gas prices in the US is $4.800 per gallon, down from $4.881 a week ago but elevated compared with the year-ago average of $3.134.
The recent market trends bode well for President Joe Biden as he faces limited policy options on lowering fuel costs.His recent proposal to suspend the federal gas tax was quickly dismissed.
And the oil industry has been focused on returning capital to shareholders, despite Biden's calls for companies to ramp up investment and production quicker.