Futures for the United States-based West Texas Intermediate fell Tuesday by 8%, or $8.67, trading below $100 at $99.76 per barrel for the first time since May 11.
Meanwhile, futures for international benchmark Brent crude fell by $7.70 to $104.76 per barrel.
Analysts at Citigroup said Tuesday that oil prices could fall to $65 per barrel by the end of this year and to $45 by the end of 2023 if the global economy tumbles into a recession.
“In a recession scenario with rising unemployment, household and corporate bankruptcies, commodities would chase a falling cost curve as costs deflate and margins turn negative to drive supply curtailments,” Citigroup analysts said in a note to clients.
“Currently, our US economists do not expect the US to dip into a recession, but are also skeptical about the Fed’s ability to engineer a modest slowdown, as the historical experience has been of hard rather than soft landings,” they wrote.