New York. The price of Texas Intermediate Oil (WTI) started the week with a significant drop as it closed Monday’s session on the New York Mercantile Exchange (Nymex) with a decrease of 5.78%.
It was placed at 103.01 dollars a barrel, in a day affected by the talks between Russia and Ukraine and the confinements decreed in China. According to data at the end of the trading day, WTI futures contracts for delivery in April subtracted 6.32 dollars from the previous session.
At its lowest point of the session in this market, Texas oil fell 8.75% and fell below the barrier of 100 dollars a barrel, but as of noon it managed to recover some ground in another day of volatility. result of the invasion of Ukraine by Russian forces.
Analysts attributed the decline in the price of “black gold” to several factors, including the talks between Ukraine and Russia that continued on Monday, which are aimed at declaring a ceasefire, and a downward revision of the consumption of China of crude oil in March due to the confinements of several Chinese cities.
“Today’s actions reflect a change in sentiment around Russia and Ukraine that has led investors to sell, along with basic concerns about demand from China caused by lockdowns,” the CIBC Private expert explained in a note. Wealth US Rebecca Babin.
For his part, Again Capital analyst John Kilduff noted that “for the first time in a while”, there are fears of low demand due to the increase in coronavirus cases in China. The drop comes amid volatility that began in late February, which saw crude oil rise above $100 a barrel for the first time since 2014.
