Oil tumbles to 2-week low on Ukraine talks, fears over China demand

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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 to $100.95 a barrel 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 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.

China posted a steep jump in daily COVID-19 infections on Tuesday, with new cases more than doubling from a day earlier to hit a two-year high, raising concerns about the rising economic costs of the country’s tough containment measures.

Further talks between Ukrainian and Russian negotiators to ease the crisis were expected on Tuesday after discussions on Monday via video ended with no new progress announced.




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