WTI crude oil futures experienced a roller-coaster ride, first falling to near the lowest level since 2021 at the opening of the Asian session, and then rebounding.
WTI crude futures fell as much as 7.2% in early Asian trade on concerns that a looming U.S. recession would hit demand.
After that, the market's decline gradually narrowed, and it rebounded in the middle of the morning. "There's no question this is another panic sell, with algorithmic trading amplifying the market move," said Vandana Hari, founder of consultancy VandaInsights.
"Fears of slowing growth in major economies put further downward pressure on commodities," ANZ analysts Brian Martin and Daniel Hynes wrote in a note.
Sentiment in the oil market is likely to remain bearish. "
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