What is happening? This is how far it can collapse

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Oil collapses below $100 a barrel: the reasons for this disastrous sell-off.

An ugly drop today for oil which, after closing last Friday’s session with a 2.4% rise, rushed up to the $111.5 region, and then started a corrective move that turned into a real one and an avalanche.

Oil is in free fall below the $100 mark

In the afternoon, a downward acceleration started to see WTI now trading at $98.25, with a decline of 9.4%.

For the first time since May 11, oil fell below the psychological threshold of $100 a barrel.

Oil: the reasons for the intense selling

The launch of a violent sell-off is the growing fear of a global recession that should translate into a sharp drop in demand.

These concerns overshadow the threat of supply disruptions, after the strike started today by some Norwegian offshore rig workers which is supposed to reduce gas and crude oil production in the northern European country.

Oil: the alert launched by Citigroup

To dominate the scene there are more than anything else concerns about the stability of the global economy and in this direction the alert issued by Citigroup is very clear.

Indeed, US bank analysts warn of the fact that oil may collapse in the coming months due to a sharp decline in consumption and demand.

Citigroup believes that in the event of a recession, oil may drop to $65 a barrel at the end of 2022, but at the beginning of next year, the decline should continue to reach the $45 a barrel threshold.

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