Recession tsunami continues to hit risk assets, oil prices plunged $14 overnight, and behind?

By    6 Jul,2022

Oil prices plunged more than $ 14 overnight, which is the second largest single-day decline in the year, but the killing power is far more than that in March, the bull pattern further loosened, such performance stunned the market, refreshing the imagination, just during the day the market is still worried about the energy crisis has not oil prices once refreshed the recent highs. But with the recession worries hit the commodity market again, first the non-ferrous metals market, the European stock market plunged, panic again dominated the risk asset sell-off, the European session began as one of the few investment banks still dare to continue to sing more varieties, crude oil also turned down from intraday highs, the real collapse occurred during the night session, as crude oil fell ever wider, the domestic energy and chemical sectors became the complementary object.


The volatility of the market is beyond expectations, but such performance is also an indication of the current market in an unstable phase of change, with the macro-level economic recession and interest rate hikes to speed up tightening liquidity in the background, risk assets up energy is gradually being depleted. The oil market on the one hand still has supply tension concerns to hedge some of the downward energy, but the overall market environment is still facing a severe test of its upward trend, especially in the past period of time in Europe and the United States under the peak consumption season demand is less than expected performance is also making the market began to worry about changes in supply and demand levels.

WTI crude oil once fell below the 100 integer mark, stabbed into the lower edge of the high oscillation range, this position is significant for both the long and short sides, taking into account the current supply side of the oil price itself is still uncertain, the degree of demand damage also still needs to be observed, the probability of a sustained plunge is still relatively small, last night's diving market is more of a reaction to market sentiment, oil prices to complete the turnaround still needs the process, the market It is expected that there will be repeated, pay attention to the pace of grasp.