Oil extend losses due to easing tension in Ukraine, COVID fears in China

By Sibel Morrow

ANKARA (AA) - Oil prices decreased on Tuesday, extending losses from the previous trading session on the prospect of a deal between Russia and Ukraine, although a COVID-related travel ban in China weighed on demand.

International benchmark Brent crude was trading at $100.68 per barrel at 0701 GMT for a 5.8% loss after closing the previous session at $106.90 a barrel.

American benchmark West Texas Intermediate (WTI) traded at $97.35 per barrel at the same time for a 5.5% decrease after the previous session closed at $103.01 a barrel.

Since Feb. 24, when Russia announced a military operation in eastern Ukraine, oil prices have surged to their highest level since 2008, with Brent hitting $139 a barrel last week.

However, concerns eased 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 has approved a new set of sanctions that include 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 and putting downward pressure on prices.

Mainland China reported 1,437 new infections, including 100 imported cases, and 906 asymptomatic cases over the past day, according to the latest data released on Monday.

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