Oil price drops to two-week low as ceasefire talks continue

Oil prices extended losses on Tuesday, sliding to a two-week low as ceasefire talks between Russia and Ukraine eased fears of further supply disruptions and surging COVID-19 cases in China fuelled concerns about slower demand.

Brent futures dropped $5.95 or 5.6% to $100.95 a barrel by 0747 GMT after tumbling by more than $6 to $100.05 earlier in the session.

U.S. West Texas Intermediate (WTI) crude fell below $100 level for the first time since March 1, dropping $5.49 or 5.3% to $97.52 a barrel. It fell to as low as $96.70 earlier in the session.

Both benchmarks declined by more than 5% the previous day.

Brent has lost nearly $40 since hitting a 14-year high of $139.13 a barrel on March 7. U.S. crude has fallen more than $30 since touching its highest since 2008 of $130.50 a barrel about a week ago.

“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 Co Ltd.

“Fresh lockdowns to curb the COVID-19 pandemic in China also raised concerns over slower demand,” he said.

via Reuters