Oil Prices Plummet as Bullish Bubble Bursts
Oil prices experienced a significant drop of $5 following the release of the EIA's inventory report, which showed a substantial increase in gasoline inventories and a dramatic decline in demand. This crash came shortly after OPEC+ agreed to maintain production cuts, which should have supported higher oil prices. The decline in prices suggests a larger shift in sentiment rather than a direct reaction to gasoline demand alone. While a recovery is possible, concerns about a potential recession in 2024 may cap future gains. At the time of writing, WTI was trading at $84.31 and Brent at $85.89.