Oil prices fell back in mid-July below the $100 a barrel mark, primarily on fears that demand in China was being dampened again by new restrictions to curb coronavirus spread. Cities in China have been re-imposing more lockdowns and curbs on movement to try and contain the spread of the highly contagious Omicron subvariant BA.5.
The strength of the dollar on currency markets was another factor in the price dipping below the ton.
OPEC is still forecasting a rise in oil demand in 2023 and is advising its members that they will need to significantly increase supply to meet upcoming demand.
It feels like this sub $100 a barrel will merely be a blip. As we go to press Brent Crude is trading in and around $104 per barrel.
