Oil prices continued to plummet on Monday, plunging to their lowest levels since January and continuing weeks of decline as fears of a looming global recession mount, inflation rates remain historically high and the U.S. dollar lowers demand.
The price of crude oil fell to their lowest level in over a year.
The price of international benchmark crude fell below $85 a barrel for the first time in over a year.
After falling more than 1.5% to around $84.51, the futures for November recovered to $85.34 at 9.44 a.m. Time in London.
The US benchmark, West Texas Intermediate, dropped as low as $77.22 a barrel early Monday morning, its lowest level since early January, though it recovered and was trading at 78.57 a.m. The time is eastern.
Over the last few weeks, oil prices have fallen to their lowest levels in over a year.
Global demand for oil has been affected by fears of a recession and the strength of the U.S. dollar.
Buyers using other currencies will have to spend more to buy the same dollar amount of crude oil after the Dollar Index hit a 20-year high.
There are a number of factors contributing to the decline in oil prices. Demand has been affected by inflation rates and fears of a global economic downturn. Demand has been pushed down by strict Covid curbs in China. The impact of Russia's invasion of Ukraine has served to buffer oil prices against recession fears, though these fears now seem to be the main force driving the market.
The experts say low prices won't last.
There is a risk of spills from Russian oil tanker ships.
The dollar hit a 20-year high after Putin called for troops and threatened a nuclear war.
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