Crude oil prices trade below $70 per barrel

The Yahoo Finance Live show reports on crude oil prices trading below $70 a barrel for the first time since late March, while investors are keeping a close watch on oil derived from Russia.

影片文字轉錄稿

- Well now, let's get you up to speed on a wild day for oil. Crude climbing from sharp losses earlier in the day and closing almost unchanged, but it is still under $70 a barrel. Earlier in the session prices hit their lowest level since December 2021. Oil prices coming under pressure over recession fears which would, of course, impact demand.

But there is another factor at play here. Investors are watching Russia's oil supply, which is reportedly seeping into the market. And China, you look at where the prices are right now, in the Asia session, it would inch closer to $60 a barrel. So we are seeing a steep sell off here.

I mean, not surprising on the one hand when you think about what we heard from Jay Powell yesterday. There are concerns about the economy heading into a recession. But the Russia factor really continues to be a big X factor here. You'll recall Russia agreed to cut their output as well. Certainly the market not believing it because that supply is still coming online.

- Yeah, the flows from Russia certainly seeming to be much more resilient than many had initially anticipated. But I think you're exactly right. It's a multitude of factors right now that's weighing on the price of crude. So you got the supply coming from Russia. Also just the fact that we're likely to see a more intense economic slowdown here in the coming months. And exactly what that is going to do for the price of oil remains to be seen.

And it was just six weeks ago, when there was a lot of talk about that the price of crude was going to continue to the upside, given the fact that OPEC+ came out and said that they were going to continue to cut production. Right now we are looking at a totally different scenario with the price of crude back below 70 bucks a barrel, and more and more people on the street. More and more people that are closely watching crude saying it's going to take quite some time to get back to that 80, 90 or even $100 barrel. We won't see that maybe any time soon.

- Yeah. Worth noting Russia's deputy Prime Minister weighing in on all this saying, look, this idea that Russia is bringing more online simply isn't true. They are committed to those cuts but, of course, we need to watch that closely to see if, in fact, they follow through on their word.