The oil prices They fell to their lowest level in almost three weeks on Tuesday, after Russia indicated that it is in favor of the nuclear deal between world powers and Iran being resumed as soon as possible.
Ceasefire talks between Russia and Ukraine further diminished fears of supply disruptions, while the Sharp rise in Covid-19 cases in China fueled concerns about a drop in demand.
The futures of Brent were down $8.90, or 8.3%, to $98 a barrel in morning London trading, while US oil West Texas Intermediate (WTI) fell $8.97, or 8.7%, to settle at $94.04 a barrel.
Both benchmark contracts fell below the $100 a barrel threshold for the first time since March 1.
Brent has lost nearly $40 from a 14-year high hit on March 7, while WTI crude has fallen more than $30 a barrel since hitting a high since 2008 almost a week ago.
The sharp drop in prices comes after the Russian Foreign Minister, Exhibition Lavrovdeclared that Moscow is in favor of the nuclear deal with Iran from 2015 resumes as soon as possible and that he hopes that Washington will lift the sanctions on Tehran.
The talks to resume the nuclear agreement, which would mean the lifting of sanctions on the sector iranian tankerrecently stalled due to Russian demands.
crude oil prices extended their losses after falling 5% the day beforeafter the rise in daily infections of Covid-19 in China raised concerns about the huge economic costs of the country’s harsh containment measures.
Meanwhile, the Federal Open Market Committee (FOMC) of the Federal Reserve The United States begins a two-day meeting on Tuesday to decide on its monetary policy, with markets waiting for the first interest rate hike in more than three years.