Oil drops below $80 as demand doubt deepens. Global oil prices slid below $80 per barrel for the first time since January on Tuesday, extending a downward trend as growing concerns about global demand offset any bullish effects from an EU-led price cap on Russian oil sales.

Brent crude futures settled down 4.03%, to $79.35 a barrel, their lowest since Jan. 4. West Texas Intermediate crude (WTI) fell 3.48%, to $74.26 after hitting its lowest level this year.

“In this market, the sentiment is more negative,” said Eli Tesfaye, senior market strategist at RJO Futures. “We could be looking at $60-a-barrel WTI the way that things are going. I think $80s are going to be the new high, and I would be very surprised to see any higher than that.”

Service-sector activity in China has hit a six-month low, and European economies have slowed due to the high cost of energy and rising interest rates.

If current declines hold, Brent crude will post its biggest single-day slump since late September.

“Oil markets will likely stay volatile in the near term, driven by COVID headlines in China and central bank policies in the U.S. and Europe,” UBS analyst Giovanni Staunovo said.