International oil prices plummeted by almost $10 a barrel on Tuesday as investors grew more conscious about the looming global recession.
Global benchmark Brent crude was down 8.85 percent, at $103.5 a barrel by 4:14 pm GMT. U.S. West Texas Intermediate (WTI) crude fell 8.7 percent, to $99.66 a barrel from Friday’s close, dropping below $100 a barrel for the first time since May 11.
Despite lingering supply concerns, oil futures plunged over fears of an economic slowdown with central banks across the globe taking aggressive measures to limit rising inflation.
Citigroup Inc. also warned that crude oil could sink to $65 a barrel by the end of this year and slump further to $45 by end of next year if recession cripples growth. However, the outlook is based on an absence of any intervention by OPEC+ producers
On the other hand, analysts at JPMorgan Chase & Co. have predicted that oil could climb to $380 a barrel if Russia resorts to retaliatory output cuts to counter the US and European penalties.
In Pakistan prices of petroleum products are at an all-time high. The country’s petroleum imports witnessed a 99.14 percent growth as they reached $19.679 billion in July-May 2021-22. A sustained slump in international oil prices could provide the country with some much-needed breathing space.