Fears of slower demand in China as Covid cases surge again
15 March 2022 - 07:21
byYuka Obayashi
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Tokyo — Oil prices slid to a two-week low on Tuesday on continued ceasefire talks between Russia and Ukraine and concerns about demand in China after a surge in Covid-19 cases.
Brent futures dropped $4.20 or 3.9% to $102.70 a barrel by 1.25am GMT after falling 5.1% the previous day.
US West Texas Intermediate (WTI) crude fell below $100 level for the first time since March 1, dropping $4.30 or 4.2% to $98.71 a barrel. That followed a 5.8% tumble the previous day.
“Expectations of positive developments in the Russia-Ukraine ceasefire talks bolstered hopes to ease tightness in the global crude market,” said Toshitaka Tazawa, an analyst at Fujitomi Securities.
“Fresh lockdowns to curb the Covid-19 pandemic in China also raised concerns over slower demand,” he said.
Mainland China posted a steep jump in daily Covid-19 infections on Tuesday, with new symptomatic cases more than doubling from a day earlier to a two-year high as a virus outbreak expanded rapidly in the country’s northeast.
Ukraine’s President Volodymyr Zelensky said late on Monday that negotiations with Russia, the world’s second largest crude exporter, will continue on Tuesday.
Zelensky also said he spoke with Israeli Prime Minister Naftali Bennett as part of a negotiation effort to end the war with Russia “with a fair peace”.
The US warned China after “intense” talks on Monday against helping Moscow in its invasion of Ukraine.
International Energy Agency (IEA) chief Fatih Birol on Monday urged oil-producing countries to pump more to stabilise markets affected by the war in Ukraine.
British Prime Minister Boris Johnson is trying to persuade Saudi Arabia to increase its oil output, a senior minister said on Monday, after reports that Johnson would travel to the Opec oil cartel heavyweight this week.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Oil falls as Ukraine ceasefire talks continue
Fears of slower demand in China as Covid cases surge again
Tokyo — Oil prices slid to a two-week low on Tuesday on continued ceasefire talks between Russia and Ukraine and concerns about demand in China after a surge in Covid-19 cases.
Brent futures dropped $4.20 or 3.9% to $102.70 a barrel by 1.25am GMT after falling 5.1% the previous day.
US West Texas Intermediate (WTI) crude fell below $100 level for the first time since March 1, dropping $4.30 or 4.2% to $98.71 a barrel. That followed a 5.8% tumble the previous day.
“Expectations of positive developments in the Russia-Ukraine ceasefire talks bolstered hopes to ease tightness in the global crude market,” said Toshitaka Tazawa, an analyst at Fujitomi Securities.
“Fresh lockdowns to curb the Covid-19 pandemic in China also raised concerns over slower demand,” he said.
Mainland China posted a steep jump in daily Covid-19 infections on Tuesday, with new symptomatic cases more than doubling from a day earlier to a two-year high as a virus outbreak expanded rapidly in the country’s northeast.
Ukraine’s President Volodymyr Zelensky said late on Monday that negotiations with Russia, the world’s second largest crude exporter, will continue on Tuesday.
Zelensky also said he spoke with Israeli Prime Minister Naftali Bennett as part of a negotiation effort to end the war with Russia “with a fair peace”.
The US warned China after “intense” talks on Monday against helping Moscow in its invasion of Ukraine.
International Energy Agency (IEA) chief Fatih Birol on Monday urged oil-producing countries to pump more to stabilise markets affected by the war in Ukraine.
British Prime Minister Boris Johnson is trying to persuade Saudi Arabia to increase its oil output, a senior minister said on Monday, after reports that Johnson would travel to the Opec oil cartel heavyweight this week.
Reuters
Market data — March 14 2022
MARKET WRAP: Naspers drags JSE to a two-month low
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