Oil prices fell more than 7% in trading today, Tuesday, to record Brent crude, the level of $ 99 a barrel, with the release of the monthly OPEC report.
OPEC kept estimates of global oil demand and supply growth unchanged this year, but noted that the war in Ukraine was accelerating inflation and could hurt oil demand.
The oil losses come, in conjunction with ceasefire talks between Russia and Ukraine, amid tightening restrictions on the closure in China, and the non-imposition of sanctions on Russian oil, especially by Europe.
Oil Prices Today
The prices of West Texas Intermediate crude futures – for delivery in April – fell by 7.3%, to reach $ 95.51 a barrel.
The prices of Brent crude futures – for delivery in May 2022 – also fell by 7%, recording $ 99.10 a barrel, after falling at $ 97.44 during the session.
Oil prices ended their trading yesterday down by 6%, amid anticipation of Russian-Ukrainian talks, as well as an increase in Corona injuries in China.
OPEC oil production rose by 440,000 barrels per day over the past month, to a total of 28.473 million barrels per day, led by Saudi Arabia and Libya.
OPEC kept global oil demand growth estimates at 4.15 million barrels per day, for a total likely to reach 100.90 million.
The organization’s estimates of the growth of oil supply from outside did not witness any change to remain at 3.02 million barrels per day, which means that the total will reach 66.59 million.
The United States has warned China against providing military or financial aid to Moscow, and two Indian officials said India may accept a Russian offer to buy crude oil and other commodities at a discount, a sign that New Delhi wants to keep its main trading partner in service.
“Even if there is a ceasefire, oil prices are expected to remain at high levels, with continued Western attempts to isolate Moscow through sanctions, keeping the global oil market in a tight state,” said Tsuyoshi Ueno, chief economist at NLI Research Institute. “.
He added, “The recent decline in the oil market continues to come as some investors abandon their positions, as they are becoming increasingly concerned about the recent volatility,” Reuters reported.
Investors cut their bullish bets on oil last week, as prices surged to multi-year highs, the economic outlook deteriorated, and extreme volatility made derivative positions more expensive to maintain.
“Expectations of positive developments in ceasefire talks between Russia and Ukraine have boosted hopes of easing the malaise in the global crude oil market,” said Toshitaka Tazawa, an analyst at Fujitomi Securities Co., Ltd.
He added that the new closures to curb the Corona pandemic in China also raised concerns about slowing demand.
China reported a big jump in daily COVID-19 infections on Tuesday, as new cases more than doubled from the previous day, hitting a two-year high as the virus spread rapidly in the country’s northeast.
More talks are expected between Ukrainian and Russian negotiators to ease the crisis on Tuesday, after discussions ended on Monday, which took place via video conference technology without announcing any new progress.
US President Joe Biden is also expected to travel to Brussels next week to meet with NATO leaders to discuss Russia’s war in Ukraine, US and foreign sources familiar with the situation said Monday.