As crude drops below $90 a barrel, investors should bet on a steep drop in the oil price, Citi strategist says

The price of crude oil fell below $90 a barrel for the first time this week after Russia invaded Ukraine.

The drop in oil is a sign of weak gasoline demand in the US as recession fears mount and inventories are high.

Ed Morse, global head of commodities research at Citigroup, told CNBC that the market is expecting things to loosen up. He said it was supply playing against demand.

If there is more supply and less demand for oil, prices will go down. While it is pleasant for consumers, companies need to be concerned about it.

The Federal Reserve's aggressive monetary policy has pushed investors to fret over the possibility of the US economy falling into a recession. At a time when US inventories and OPEC leaders reported increases in the supply side, American consumers have been deterred from buying gasoline.

As the US braces for a busy Hurricane season, there could be shocks to come.

"It's the one major risk that lies ahead in the markets, because the world is increasingly dependent on US oil production as well as Russia cutting energy exports in response to the aggression used against them," he said.

He said that gas prices could bounce back and oil prices could go up quickly.