Global oil prices slid below $100 per barrel on Thursday, marking a significant downturn amid growing concerns over weakening demand and broader economic uncertainty. Brent crude futures dropped 3.2% to $98.50, the lowest level in three months, while West Texas Intermediate (WTI) fell to $95.75, according to market data.
The decline follows a series of bearish signals, including slowing manufacturing activity in China and Europe, as well as rising U.S. crude inventories. Analysts attribute the drop to fears of a looming recession in major economies, which could further suppress energy consumption. “The market is pricing in a demand destruction scenario,” said one commodities analyst, speaking on condition of anonymity due to company policy.
OPEC+ production cuts, announced earlier this month, have failed to offset the downward pressure. Sources within the cartel suggest an emergency meeting may be convened if prices continue to slide. Meanwhile, U.S. shale producers are reportedly scaling back drilling plans in response to the price volatility.
Looking ahead, traders will closely monitor next week’s Federal Reserve interest rate decision, which could either stabilize or further unsettle commodity markets. “If the Fed signals a pause in rate hikes, we might see a short-term rebound,” noted an energy sector strategist. “But the structural demand issues won’t disappear overnight.”