Global oil prices dropped to their lowest levels since before Russia’s February invasion of Ukraine, as traders fretted over the possibility of an economic recession later this year that could torpedo energy demand.
According to Bloomberg data, West Texas Intermediate (WTI) crude fell 2.3 percent to $88.54 per barrel, a level last seen in the weeks preceding the Russo-Ukraine war, when it peaked at more than $130 per barrel in March.
The drop this week was influenced by government data indicating that Americans are driving less this summer than they were even two years ago.
Fears of an economic slowdown grew, as did concerns about the effects on crude oil demand.
On Wednesday, the oil cartel OPEC+ agreed to boost September production by 100,000 barrels a day, while issuing a stern warning about the “very limited” capacity surplus.