Brent drops below $100 over hopes of deal in Ukraine, COVID fears in China

China's daily virus figures surge to 2-year high, prompting lockdown measures under its policy of 'zero-COVID'

By Sibel Morrow

ANKARA (AA) - Brent decreased below the $100 milestone on the back of easing supply fears amid ongoing talks between Russia and Ukraine, while a COVID-related travel ban in China hampered demand.

International benchmark Brent crude was trading at $98.02 per barrel at 1125 GMT for an 8.3% loss after closing the previous session at $106.90 a barrel.

American benchmark West Texas Intermediate (WTI) traded at $94.42 per barrel at the same time for an 8.3% decrease after the previous session closed at $103.01 a barrel.

Oil prices have risen to their highest level since 2008 since Russia announced a military operation in eastern Ukraine on February 24, with Brent reaching $139 per barrel last week.

However, Brent oil dropped to as low as $97.50 a barrel during midday trading, with concerns alleviated after Ukraine and Russia began talks to settle their differences.

Delegations from Russia and Ukraine held peace talks every day via videoconference “to fulfill the tasks set by (Russian President) Vladimir Putin for the peaceful future of Russia,” Vladimir Medinsky, the head of the Russian delegation, wrote on his Telegram channel.

Meanwhile, France, which holds the presidency of the European Union, announced late Monday that the bloc had approved a new set of sanctions, including imports of key iron and steel goods from Russia.

- China’s rising COVID cases further decrease prices

As China's daily virus figures have surged to a two-year high, the country implemented lockdown measures on Sunday under its policy of "zero-COVID”, raising fears over demand while putting downward pressure on prices.

Chinese health officials on Tuesday admitted the COVID-19 situation in the country is “grim and complex” amid a dramatic rise in daily cases.

Out of 31 provinces in China, 28 have reported coronavirus cases during the past week.

Meanwhile, Chinese state-owned carmaker FAW Group and German carmaker Volkswagen suspended production due to rising virus cases.

Kaynak: