- Oil prices fall sharply for the second day in a row.
- Crude erased March gains, after losing 24% from the peak.
- Some optimism in Ukraine and more restrictions in China favor downward acceleration.
The decline in oil prices continues with great speed. The barrel of WTI extended the decline below $100.00 and reached the lowest level since March 1. The price on the trading platforms reached as high as $94.98 and remains near the lows, falling almost 5% on the day.
The second consecutive drop in WTI and the fourth of the last five days. Since the peak in March, it has already fallen 24%.
The situation in Ukraine remains a key factor for the price of oil. The bombing of Russia they are getting closer to the center of kyiv, while new talks are taking place. A certain optimism regarding the new round of negotiations has partly pushed down the price of oil.
Another negative factor for crude oil is the increase in cases of covid-19 in China, which led to the announcement of restrictions, affecting more than 40 million people.
Concerns about the supply of oil for which it comes from Russiaare still there, although the Organization of Petroleum Exporting Countries stated that there is no shortage.
In terms of data, in the US, the producer price index will be known and later the API weekly oil inventory figures. The decision of the Federal Reserve will be known on Wednesday.
Technical levels
Source: Fx Street
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