Title: Oil tumbles to 2-week low on Ukraine talks, fears over China demand
Mar 15, 2022 05:35AM ET
Oil prices widened declines on Tuesday, sinking to a two-week drop, as truce discussions between Russia and Ukraine softened fears of further supply disruptions and a spike in COVID-19 cases in China fuelled concerns about slower demand.
Brent futures fell $5.95, or 5.6 percent, to $100.95 a barrel at 02:47 AM ET, after dropping more than $6 to $100.05 earlier.
US West Texas Intermediate crude fell below $100 for the first time since March 1, dropping $5.49, or 5.3%, to $97.52 a barrel. Earlier, it had fallen as low as $ 96.70.
The previous day, both benchmarks had fallen more than 5%.
Brent has lost nearly $40 since reaching a 14-year high of $139.13 a barrel on 7 March.
US crude has fallen more than $30 since peaking at $130.50 a barrel earlier this week.
China recorded a sharp increase in daily COVID-19 infections on Tuesday, with the number of new cases more than doubling from the preceding day and hitting a two-year high, sparking worries about the soaring economic cost of the country's stringent containment efforts.
More talks between Ukrainian and Russian negotiators were expected on Tuesday to defuse the crisis after Monday's video-broadcast talks ended without new progress.
US President Joe Biden is expected to travel to Brussels next week to discuss Russia's war in Ukraine with NATO leaders, American and foreign sources familiar with the situation said on Monday.
The United States has warned China against providing military or financial aid to Moscow. India, however, may accept a Russian offer to buy crude oil and other commodities at a discount, two Indian officials said - a sign that Delhi wants to keep its main trading partner on board.