Diving over 5% for oil

Oil prices fell sharply on Monday amid reports that Washington was considering turning to Venezuela to boost global supplies amid the war in Ukraine.

April futures fell $ 6.32, or 5.8%, to close at $ 103.01 a barrel, slipping below $ 100 a barrel.

Brent crude for May delivery lost $ 5.77, or 5.1 percent, to $ 106.90 a barrel on the ICE Futures exchange.

Last week, the US contract exceeded $ 130 a barrel, while Brent approached $ 140 a barrel.

April gasoline also recorded large losses, at $ 3,169 a gallon, down 4.3%. Heating oil closed at -4.1% at $ 3,276 a gallon.

Reports that the United States is considering lifting some sanctions against Venezuela’s oil industry to cover some of the losses from Russia have sparked strong price pressures.

According to a Reuters report, Chevron Corp. is already preparing to take over operational control of its Venezuelan consortia if Washington lifts sanctions.

Price pressures have been exacerbated by the Chinese government’s decision to implement a total lockdown in Shenzhen, one of the fastest growing cities in the world, as it intensifies its efforts to combat Covid-19 in the southeast of the country.

Source: Capital

You may also like