Prices of oil fell by over 1% today continuing slide of the day before, while world financial markets moved down after nearly a record intra-day drop on Wall Street.
Brent futures stood at $66.91 for a barrel, which is 1.1% loss compared to the previous settlement. It was around $4 less than the peak of this year, reached in January.
US WTI futures stood at $63.46 for a barrel, which is the same 1.1% decrease from the last settlement, around $3 lower than the maximum of 2018.
Crude futures slid predominantly because of a massive sell off in equities, Sukrit Vijayakar of Trifecta Energy said.
US dollar is considered a secure currency, so people ran to it. Therefore the dollar rises, driving up commodities prices, leading to futures sell off, he also said.
Financial markets plummeted yesterday as US bond returns showed a strong hike, which caused worries of inflation pick up and possible interest rates rise. Unexpectedly, inflation has come to the front among issues in markets, JPMorgan’s note to customers said. Fundamentals are also the cause of correction in oil, according to traders.