Oil Plunges Further on Weakening Demand, Geopolitical Worries

Wall Street accelerates fall at close after Fed minutes
August 19, 2021
Wall Street drops as taper fears, commodity losses weigh
August 19, 2021

Oil Plunges Further on Weakening Demand, Geopolitical Worries

US benchmark oil prices plunge more than $2, down 3.6% at $63.11 a barrel and are now down more than 16% from a mid-July peak above $75 as investors start to warn of a looming bear market. WTI crude has fallen for five consecutive sessions as demand for gasoline, jet fuel and other products drop due to a seasonal slowdown, fears over the Delta variant, and inflation. “Oil is falling sharply on fear factors and moving into a near term bearish market trend,” says Peter Cardillo at Spartan Capital. “We think the market nerviness stems from an overbought market, rising geopolitical concerns and technical factors.”