WTI crude futures declined almost 6% to around $97 per barrel on Tuesday, falling below the $100 level for the first time since March 1 amid ongoing ceasefire talks between Russia and Ukraine and fears of a demand slowdown from China following the reimposition of fresh lockdowns.
Ukrainian President Volodymyr Zelensky said negotiations with Russia will continue on Tuesday and that he spoke with Israeli Prime Minister Naftali Bennett towards ending the war with Russia “with a fair peace.” Meanwhile, China is facing its worst Covid crisis since early 2020, raising demand concerns from the world’s largest crude importer.
Elsewhere, IEA chief Fatih Birol urged oil-producing countries on Monday to pump more to stabilize markets. The US oil benchmark touched a 14-year high of $130.5 last week before reversing dramatically as traders assessed potential improvements to the supply outlook disrupted by the Russia-Ukraine war and related sanctions.