London, Thursday, 24 March 2022
Oil prices fell more than 5% early Tuesday, with the U.S. benchmark WTI falling to just below $100 a barrel after hints that the Russia-Ukraine peace negotiations, which had been suspended for two weeks, had resumed.
WTI Crude was down 5.71 percent at $99.91 as of 9:34 a.m. ET, while Brent Crude was down 5.64 percent at $106.10.
Oil prices have been falling since Monday, when China, the world's largest oil importer, enforced a lockdown in Shanghai owing to a high number of COVID infections, reigniting fears of a drop in demand in the world's top crude importing market.
The dip in oil prices on Monday was yet another large day-to-day movement in Brent crude prices, which fell by about $11 a barrel on the day, or around 9%, according to Javier Blas, Bloomberg's energy and commodities columnist.
Monday's oil price decline was the third-largest one-day decrease in actual dollars, but only the 27th-largest one-day drop in percentage terms, according to Blas.
Following a turbulent start to the day on Tuesday, oil prices fell in the early hours of the AM ET as evidence surfaced of a possible favourable outcome of Russia-Ukraine peace negotiations, the first such talks in more than two weeks.
Russia vowed to cut back its military operations and activities surrounding Ukraine's capital city of Kyiv and the northern city of Chernihiv at Tuesday's discussions in Istanbul.
Ukraine, for its part, suggested maintaining a neutral position and refusing to join coalitions or host foreign forces on its soil. Ukraine, on the other hand, is seeking international security guarantees to protect it from attack.
According to Reuters, Russia's top negotiator, Vladimir Medinsky, has stated that he will evaluate Ukraine's offers and report to Russian President Vladimir Putin.
Oil prices fell early Tuesday on hopes of peace, though it's uncertain whether sanctions against Russia will be lifted anytime soon.
(Report by: The Decision Maker – Energy editors)