West Texas Intermediate (WTI), the US crude benchmark, fell 5.7% to $97.13, and North Sea Brent crude plunged 6% to $100.54.
The price of the benchmark barrel in the United States WTI fell more than 5% on Tuesday, amid concerns regarding a slowdown in the Chinese economy which led investors to revise their forecasts downwards.
West Texas Intermediate (WTI), the US crude benchmark, fell 5.7% to $97.13, and North Sea Brent crude plunged 6% to $100.54.
The decline comes more than a week following oil prices hit their highest since 2008, boosted by supply uncertainties generated by the war in Ukraine.
The United States and Great Britain have decided to stop importing oil from Russia, the world’s third largest producer of this raw material.
In addition, Beijing announced on Sunday the confinement of the 17 million inhabitants of Shenzhen, the technological center of China, to deal with an upsurge in Covid-19 cases in the country.
With China being the world’s largest importer of rough, the move represents a demand shortfall, while a glimmer of optimism emerges regarding peace talks between Russia and Ukraine
“Sentiment in commodity markets remains headline-driven, with talks between Russia and Ukraine raising hopes that supply disruptions will be minimal,” said Daniel Hynes of Australia & New Zealand Banking. Group.
“This should lead to increased pressure on oil prices. However, this does not reflect the fundamental situation, with Russian oil increasingly isolated,” he added.
