Why have crude oil prices slumped below their pre-Russian Ukrainian invasion lows? Brent crude lost over 5% last night, now down below the $88USD per barrel level, with WTI crude down to just over $81USD per barrel, barely above its 2021 high:
Good news for motorists, hopefully good news for inflationary pressures, but the messaging here is one of recession risk, as Europe and the US faces extraordinary pressures from central banks and other energy prices, namely natural gas. Gas is still near its recent highs, even after some solid retracement in recent weeks:
Its also all about the mighty USD, now at a 20 year high against all other currencies, with the stronger greenback putting downside pressure on oil prices due to its petrodollar status in sales.