Steep Losses for Crude Oil, But Don't Panic

July 7, 2022--Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Crude oil prices failed to stage a recovery early Wednesday after recessionary fears led to steep losses in the previous session, though at least one analysis finds nothing much has changed apart from the mood. Volatility should be expected in the current market climate. There are supply-side concerns ranging from the war in Ukraine to underperformance among members of the Organization of the Petroleum Exporting Countries (OPEC). On the other side of the equation, demand remains resilient despite looming fears of a recession. It was the latter force that sank the price of crude oil during the previous session. After the Federal Reserve Bank of Atlanta lowered its snap estimate of second-quarter gross domestic product from minus 1% to minus 2.1%, the bottom fell out.