The prices of Petroleum fell sharply on Monday, weighed down by possible progress in negotiations between Ukraine and Russiabut also due to the confinement in the city of Shenzhen, a technological center in the south of China.
Around 10:10 GMT, the Brent Crude North Sea cargo for May delivery was down 3.75% at $108.44. For his part the West Texas Intermediate (WTI) for April delivery fell 4.91% to $103.95, after briefly falling more than 5%.
The Petroleum “it is on the decline (…) upon learning of tangible progress in the negotiations between Ukraine and Russia over the weekend,” said Tamas Varga, an analyst at PVM Energy.
In addition, the circumstances continue to be conducive to price swings, “given the concern that OPEC+ [la organización de países productores de petróleo y sus aliados] won’t be able to easily increase supply,” said Susannah Streeter, an analyst at Hargreaves Lansdown.
In parallel, the confinement of the 17 million inhabitants of the city of Shenzhen, the technological center of southern Chinadue to covid-19 is contributing to the drop in prices “since demand may be affected by the decline in Chinese economic growth.”
