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Oil price ‘perforated’ the 100 USD/barrel mark

Oil prices continued to decline sharply in the trading session on March 14. At 9:40 p.m. on March 14, Vietnam time, the price of WTI oil fell 7.7% to 100.8 USD/barrel while Brent oil also plummeted 7.29% to 104.4 USD/barrel. At one point, the price of WTI oil “perforated” the 100 USD/barrel mark, down to 99.98 USD/barrel.

The main driver of the sharp drop in oil prices was when China closed some cities after a sharp increase in Covid-19 cases and Russia and Ukraine resumed negotiations today.

  Oil price broke the mark of 100 USD/barrel - Photo 1.

WTI oil price movements in the past 1 month.

China has locked down all 17.5 million people in the center of one of the busiest cities, Shenzhen, and restricted bus service to Shanghai after Covid-19 cases spiked in the past few days. the last few days.

“This raises concerns about a slowdown in oil demand in China. More importantly, it shows that China is not ready for a zero-Covid policy,” ING strategists Warren Patterson and Co. Wenyo Yao said on March 14.

Signals from late last week that Russia and Ukraine would make progress in negotiations also contributed to cooling oil prices. It is the escalating armed tension between these two neighboring countries that has caused oil prices to skyrocket in the past few weeks.

“Russia has started to get serious about negotiations,” Ukrainian negotiator Mykhailo Podokyak said in a video cited by Reuters. “I think we will get some results in the next few days,” Podolyak added.

Earlier over the weekend, US Deputy Secretary of State Wendy Sherman said Russia may be ready to conduct substantive negotiations on Ukraine.

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