U.S. Oil Plunges Under $100 As Recession Fears Mount; Gas Prices Set To Tumble

Global oil prices plunged the most in several weeks Tuesday as investors pared bets on crude and commodities demand amid increasing signs of recession in the world’s biggest economy.

The commodity price slump, which pulled copper prices to the lowest in more than nineteen months, came amid a so-called inversion of the U.S. Treasury bond yield curve, a condition which occurs when 2-year note yields climb past 10-year yields.

According to a study from the San Francisco Federal Reserve, a sustained inverted yield curve has preceded all of the nine recessions the U.S. economy has suffered since 1955, making it an extremely accurate barometer of financial markets sentiment.

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