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Current: Oil prices drop sharply – what happened here?

The price of oil is currently falling sharply. US WTI oil fell from 3pm from $ 117 to the current $ 110.77. European Brent falls to $ 113.56 from $ 119.55. What happened here?

A Zerohedge is currently commented, translated: “Recession fears trigger oil and gas exodus, energy exploration stocks enter bear market. With Atlanta Fed’s GDPNOW model now predicting a recession – and rising inflation expectations – Fed speakers today they reaffirmed their hawkish commitment to “do whatever it takes” to slay the inflation dragon, whether that means triggering a recession or not. “ LiveSquawk also references today’s Fed statements. They would reaffirm the “unconditional commitment” to restore price stability.

For the price of oil, this means that if the Fed continues to raise interest rates so drastically, it could sacrifice the US economy to contain inflation by triggering a recession. This means a drop in oil demand. And the oil market probably hit him hard in panic and lowered the price of oil.

In the chart we see the trend in the price of WTI oil over the last ten days. With such a sharp and rapid decline, it is currently not uncommon for prices to jump $ 1 or $ 2 in minutes.

Trend in the price of oil over the past ten days

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