Prices dropped sharply to $82.41, deepening a selloff that has brought relief at the gas pump

Oil slides to fresh seven-month lows as selloff deepens

FULL SHOW 09/07/2022: Wall Street is betting on another big interest rate hikeReplayMore Videos ... (17 Videos)FULL SHOW 09/07/2022: Wall Street is betting on another big interest rate hikeWhat we know about Lukoil chairman's death 'Both a warning and a threat': Economics professor decodes Fed chair's commentsFed chair lays out the 'unfortunate costs of reducing inflation''Quiet quitting' isn't actually about quittingOscar Mayer introduces a hot dog-flavored ice popBiden's student loan forgiveness plan: Who it helps, who it doesn'tBiden forgave $10K in student debt. People flooded TikTok with their reactionsHe was a famous hacker. Now, he's detailing his main concern with TwitterStudent loan repayment resumes in a few days. Hear what one economy expert wants to see happen'Intentional to some degree': HUD secy. on racism in home appraisal processEngineer says she 'quiet quit' her job. Hear what that meansSome Tesla drivers use kids as a prop to test 'full self-driving' featureWalmart vs. Target: A tale of two retail resultsMisinformation, not machines, biggest election vulnerability, hackers sayHere's why a growing number of Americans are moving to MexicoHere's how the Inflation Reduction Act could affect youNew York (CNN)Oil prices dropped sharply on Wednesday, deepening a selloff that has already brought relief to drivers at the gas pump.

US oil tumbled 5.1% to $82.41 a barrel in recent trading. That's the lowest intraday price since January 24. US crude is now down by more than one-third since briefly hitting $130 a barrel in early March.Brent crude, the world benchmark, dropped below $90 a barrel for the first time since February 8. Brent was recently down 4.6% to $88.55 a barrel.The selling comes just days after OPEC and its allies, known collectively as OPEC+, reversed course by cutting production to support prices.Analysts cited a range of factors behind Wednesday's losses, including concerns about the health of the world economy and the skyrocketing US dollar. A stronger US dollar tends to weaken demand for oil overseas.Read More"High prices are already starting to weigh on the European economy, and fears of contagion are causing a vicious selloff in oil prices today," said Matt Smith, lead oil analyst Americas at Kpler.The good news is that the drop in oil prices should continue to lower prices for consumers at the gas pump.Since hitting $5.02 a gallon on June 14, the national average for regular gas has dropped 85 days in a row. A gallon of regular now fetches $3.76, down 31 cents over the past month, according to AAA. There are now 15 states averaging $3.50 or less, including North Carolina, Iowa and Florida.Tom Kloza, global head of energy analysis at the Oil Price Information Service, is skeptical the drop in energy prices will continue -- especially given recent threats from Russian President Vladimir Putin and other Kremlin officials, who have said they could retaliate against the West by cutting off energy exports."Putin has indicated he will do crazy things," said Kloza. "This is an interlude, a buying opportunity. There's a false sense of security."Responding to the oil price cap announced by the G7 on Russian crude, Putin said his country could reduce exports to zero."We will not supply anything at all if it is contrary to our interests, in this case economic ones," Putin said Wednesday. "Neither gas, nor oil, nor heating oil -- we will not supply anything."Another risk is that oil prices drop to levels that force OPEC+ to respond more forcefully by aggressively reining in production following Monday's small output cut."OPEC+'s move was a not-so-veiled threat that they stand ready to defend prices," Kloza said. "We are getting to numbers where the Saudis, Emirates and Kuwaitis would be willing to cut back on production."

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