Oil prices tumbled more than 7% to their lowest in almost three weeks on Tuesday as supply disruption fears eased and surging Covid-19 cases in China spurred demand concerns.
Brent futures fell $7.89, or 7.4%, to $99.01 a barrel by 11:51 a.m. EDT , while U.S. West Texas Intermediate crude dropped $8.11, or 7.9%, to $94.90 a barrel.Both contracts moved the closest to oversold territory since December. They had been in overbought conditions as recently as early March, when the benchmarks reached 14-year highs after Russia's invasion of Ukraine. Since then, Brent has lost about $40 and WTI has fallen by more than $30.
The talks to revive the nuclear accord, which would lead to sanctions on Iran's oil sector being lifted and allow Tehran to resume crude exports, had recently stalled because of Russian demands. In the fallout from Russia's invasion, which it calls a"special operation," Western sanctions against Russia have failed to deter China and India from buying Russian crude."Whilst reports of promising talks are to be welcomed, it is hard to see how either side at this stage would be prepared to make concessions that would be acceptable to any party," said a research note from Kpler.
Meanwhile, the U.S. Federal Reserve is widely expected to raise interest rates by 25 basis points on Wednesday for the first time in four years to fight soaring inflation. Such a move could strengthen the U.S. dollar and dampen demand for commodities priced in the currency.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Global shortage of cooking oil has Oil World concernedGovt around the world will soon need to choose between food oils and biofuels. That's according to Oil World commenting on the global shortage in cooking oils and subsequent sky rocketing prices.
Read more »
War will play havoc with prices of oil and foodThe increase in the price of oil not only drives up the cost of transport, but also manufacturing costs. Fertiliser prices correlate to the oil price, and it will thus drive up the cost of grain and oilseeds.
Read more »
Why Russian oil sanctions rattle America's energy markets, even though US is the biggest producerWhile the US is now a net producer and net exporter of energy, prices for those commodities are set in a highly globalised marketplace.
Read more »
Oil right now: India cosies up to Russia for cheap fuelIndia considers buying discounted Russian oil and commodities, officials say
Read more »
A brief history of oil and wartimeOld Mutual Wealth Investment Strategist Izak Odendaal discusses the war-induced oil price shock and recalls the stagflation seen in the 1970’s, a period remembered as miserable for ordinary people, as likely to be repeated in today’s world.
Read more »
War will play havoc with prices of oil and foodThe increase in the price of oil not only drives up the cost of transport, but also manufacturing costs. Fertiliser prices correlate to the oil price, and it will thus drive up the cost of grain and oilseeds.
Read more »