Oil price dropped sharply, losing the mark of 110 USD/barrel

Crude oil prices The world market today (March 28) fell sharply, losing the milestone of USD 110/barrel. Specifically, according to data from Oilprice, at 6:52pm today (March 28, Vietnam time), the price of Brent crude oil for May delivery was trading at 114.3 USD/barrel, down 6.34 USD. , equivalent to 5.25% compared to yesterday.

At the same time, the price of US light sweet crude oil (WTI) for April delivery was trading at 107.6 USD/barrel, down 6.28 USD, or 5.51% compared to yesterday.

Experts said that oil prices turned down after China announced a blockade of Shanghai – China’s largest city by population – for at least 9 days to prevent the spread of the Covid-19 epidemic. China is the world’s top oil consumer. This could weigh on oil demand in the country of 1.4 billion people and push down oil prices.

In addition, oil prices fell as the market listened to three-day face-to-face talks between Russia and Ukraine in Turkey.

In recent weeks, world oil prices have increased sharply because of the Russia-Ukraine conflict and sanctions targeting Russia. But China’s strict anti-epidemic regulations have blocked the rise in oil prices. In the middle of this month, oil prices also dropped sharply after China blocked the city of Shenzhen with 17 million people.

According to Jeffrey Halley – senior analyst, in charge of Asia – Pacific region at consulting firm Oanda – the decline in world oil prices may be only temporary. But if China imposes restrictions on a broader scale, oil prices will see a sharper decline.

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