Declining turn for oil – Under € 100 per gas

LAST UPDATE 14:38

Reversal in oil prices, which erased the new significant gains that were recorded and went into negative territory, at the end of the third consecutive week of strong volatility.

Earlier, little progress in talks between Russia and Ukraine had pushed prices to the brink of $ 110, amid increased chances for tougher sanctions and a longer cut in Russian crude supply.

The fourth day of talks between Russian and Ukrainian negotiators was televised, but the Kremlin said no agreement had been reached, and that despite battlefield failures and Western sanctions, President Putin had shown little sign of backing down.

In this climate and in the midst of extremely high volatility, buyers reappeared in the oil markets, with Brent falling slightly more by 0.3% to $ 106.28 a barrel, after rising 9% yesterday, which is the highest of mid-2020. The day high had not reached $ 109.59 today.

The West Texas Intermediate is down 0.1 percent at $ 102.88 a barrel after hitting $ 106.28 today after rising 8 percent yesterday.

On a weekly basis, however, both brent and the WTI are expected to end with a fall of about 3%, having fallen from the 14-year highs they reached two weeks ago.

“I expect more volatility. There is still a lot of uncertainty out there,” said Justin Smirk, chief economist at Westpac.

Shrinking supply due to sanctions on Russia, nuclear talks with Iran, declining inventories and concerns about rising coronavirus cases in China have hit demand and led to this week’s ups and downs.

Analysts at RBC Capital say the losses in Russian oil exports are likely to prove to be long-lasting and that there will be little potential for compensation.

Declining momentum for gas

At the same time, the de-escalation of the pressures on the price of European natural gas continues, which in fact fell today below 100 euros.

Specifically, the price of the April contract in Amsterdam (TTF), the pan-European benchmark, is moving with losses of 4.87% and stands at 99.97 euros per megawatt hour, marking daily lows. At the high today it was found up to 109.8 euros.