LAST UPDATE: 18:00
International oil prices fell more than 7% on Monday as worries about weaker fuel demand in China intensified after Shanghai launched a two-stage lockdown to curb rising rates.
The market began another week of uncertainty, with Russia’s war in Ukraine, the world’s second-largest oil exporter, and the expansion of lockdowns due to rising cases in China, the world’s largest crude importer.
In this climate, futures contracts for the global benchmark, Brent crude oil delivery in June fall to $ 111.7 a barrel, down 7.4%, or $ 9, while the American Texas Texas Intermediate Crude Delivery May moves to $ 104.99 a barrel, down 7.8% or $ 8.92.
Shanghai lockdown has led to a new selloff from frustrated investors who expected it to be avoided, analysts say.
Shanghai has launched a two-stage lockdown in the city of 26 million people, closing bridges and tunnels and restricting highway traffic to curb growing local cases.
Analysts have differing views on how hard Russian oil exports could be hit by economic sanctions imposed on Moscow by the United States and its allies after Russia’s invasion of Ukraine.
Some estimate that about 1-3 million barrels of Russian oil may not reach the market daily.
“Oil prices are likely to stay above $ 100 a barrel for a while, as global supply becomes tighter as supplies from Russia decline as the US moves into the summer (when demand increases due to travel).” said the CEO of Emori Fund Management.
Gentle rise for gas
In Europe, gas is showing stabilizing, slightly upward trends. The Dutch April delivery gas contracta reference point for the whole continent, moves at 104.9 euros per megawatt hour, with gains of 3.1%.
It is noted that Russian President Vladimir Putin is waiting by the Cabinet of Ministers, the Central Bank of Russia and Gazprom to submit a report by March 31 on the implementation of the ruble gas payment order for “unfriendly countries”, the Kremlin said in a statement. Ria Novosti news agency.
Source: Capital
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