Oil dropped below $100 for the first time since April

The price of Brent crude oil dropped below $100 per barrel for the first time since April 25. The daily low was fixed at $99.09 per barrel. The price of futures for North American WTI crude oil fell to $95.54 per barrel. 

Analysts assume that the decline in the oil market will continue further. By the end of 2022, experts expect Brent at $65 per barrel, and by the end of 2023, the price will be at $45. The main reason for the decline in the value of «black gold» analysts call reduced demand due to a possible recession in the economy. 

Economists also offer their forecasts for the coming months. Some suggest that by the end of July, Brent will fall to $85 per barrel. An additional impetus to the decline in oil prices was the widespread strengthening of the US dollar – the US currency jumped to 20-year highs. 

If we consider the technical picture of the current situation, then we can assume a logical rebound here. At the same time, the $107-108 per barrel zone may act as a mirror resistance. A strong support zone from below is located around $97-99 per barrel. It can be expected that oil prices will consolidate in this range for some time.