Oil prices continued to slide on Wednesday and are close to their pre-Russian invasion levels in Ukraine, weighed down by fears of falling demand for black gold and optimism about ongoing talks between Moscow and kyiv.
At the end of a very volatile day, the barrel of Brent from the North Sea for delivery in May lost 1.89% to US$ 98.02. While the West Texas Intermediate (WTI) for April fell 1.49% to US$95.04.
The benchmark two barrels are thus below $100 and close to their pre-invasion levels in late February and subsequent Western sanctions against Moscow that pushed black gold close to all-time highs.
“These movements are due to the hopes and expectations derived from the negotiations between Russia and Ukraine,” summarized Matt Smith, head of oil analysis at Kpler.
New talks between kyiv and Moscow were described by Ukrainian President Volodimir Zelensky as “more realistic”, although Russia continues to make progress on the ground.
Kremlin spokesman Dmitri Peskov said Wednesday that negotiators are discussing “a compromise” that would make Ukraine a neutral country on the model of Sweden or Austria.
investor caution
Given the decline in prices, “investors seem to put a lot of emphasis on these neutrality plans, although I would advise extreme caution on this issue,” analyst Smith warned.
According to this specialist, crude oil prices will rise again due to a lack of supply. “In theory, there will be a supply shortage in the next two weeks,” he said.
The International Energy Agency (IEA) said on Wednesday that it fears a strong “impact” on world oil supply as a result of sanctions on Russia for the invasion of Ukraine, and estimated that Russian oil cannot be replaced immediately. .
Russia is the second largest exporter of crude oil in the world.
For Stephen Brennock, from PVM Energy, there are other factors that drag oil, such as “the fears linked to covid-19 that return” or “hope that an agreement will be reached in the negotiations on the Iranian nuclear (agreement)”.
Source: Larepublica
Kingston is an accomplished author and journalist, known for his in-depth and engaging writing on sports. He currently works as a writer at 247 News Agency, where he has established himself as a respected voice in the sports industry.
