Oil futures increase their losses .. Brent falls 8.2% to $ 98.12 a barrel, and US crude is down
continued oil prices On Tuesday, it lost more than 8%, reaching its lowest level in two weeks, following ceasefire talks between Russia and Ukraine eased fears of another oil supply disruption, while Corona virus infections in China raised concerns regarding slowing demand for crude.
Brent crude futures for May delivery fell 8.2% to $98.12 a barrel, while US Texas crude futures fell 8.8% to $94.16 a barrel.
This is in addition to the losses that oil suffered during yesterday’s session, as the global benchmark Brent crude contracts ended Monday’s trading session as low as $5.77, or 5.1%, to record at the settlement of $106.90 a barrel. US West Texas Intermediate crude contracts fell $6.32, or 5.8%, to settle at $103.01 a barrel.
These sharp losses come regarding a week following West Texas and Brent crude prices reached their highest levels in 14 years, once morest the backdrop of Russian President Vladimir Putin’s war in Ukraine and supply concerns following the United States and Britain ban on crude imports from Russia.
“Expectations of positive developments in ceasefire talks between Russia and Ukraine have boosted hopes of easing (supply) tightness in the global crude market,” said Toshitaka Tazawa, an analyst at Fujitomi Securities.
“The new lockdowns to curb the COVID-19 pandemic in China have also raised concerns regarding slowing demand,” he added.
And on Sunday, China announced that it would impose a closure on the city of Shenzhen, the technology center in the country of 17 million people, due to the outbreak of the Omicron mutated, which caused a rise in Corona virus infections throughout the country.
The move caused concern regarding the outlook for demand, given that China is the largest importer of crude oil in the world, in addition to a glimmer of hope in peace talks between Russia and Ukraine, which also affects the markets.
“Sentiment in commodity markets continues to be driven by the headlines, as talks between Russia and Ukraine have revived hopes that supply disruptions will be minimal,” said Daniel Haynes of Australia and New Zealand Banking Group.
“This would put oil prices under increasing pressure. However, it does not reflect the basic picture, with the increasing isolation of Russian oil,” he added.
