Global economic uncertainty depressed crude oil prices in the market with Brent dropping below $80 per barrel for the 2nd time in 2022.
Early this morning Brent crude oil futures fell 4% at $79.35 a barrel while West Texas Intermediate (WTI) crude oil futures fell 3.5% at $74.25 a barrel.
It's a price drop of over 1% for 3 consecutive sessions, reversing almost all of the gains made this year.
The fall factor can be concluded with a chain of bearish market news starting with concerns about the prospect of a Federal Reserve (Fed) interest rate hike.
For now the market expects the Fed to implement a 50 basis point increase based on Jerome Powell's dovish comments but strong economic data readings return the possibility of a 75 basis point increase for the 5th time.
Also contributing to the decline was news of weak economic activity in China with Beijing's trade activity expected to decline in November.
Despite news of plans to reduce OPEC+ production limits and the easing of sanctions in China, it appears to have failed to overcome concerns about the central bank's tightening policy.
Meanwhile oil analyst, Matt Smith, concluded that Brent experienced its biggest daily decline since September and there is a possibility of WTI trading below $60 a barrel.
In addition, UBS analyst Giovanni Staunovo predicts that oil market volatility will continue for a while with the situation in China and the United States taking center stage.
