Oil falls below $100 a barrel as China lockdowns threaten demand

Brent crude fell below $ 100 a barrel for the first time since March 1, amid expectations that extradition in China, the world’s largest oil importer, could ease demand for oil.

Brent, the international oil index, and West Texas Intermediate, the U.S. crude oil marker, fell Tuesday to their lowest levels since Feb. 25. Brent hit $ 97.44, down 9 percent, and WTI fell 9 percent. To $ 93.53.

Oil prices have soared to the highest levels since 2008 this month, as Russia’s isolation from the international community over its invasion of Ukraine has limited global oil and natural gas supplies.

But that pressure eased slightly as Covid-19 infections in China rose to the highest levels since the virus first appeared more than two years ago, Which leads to a lock In the largest production centers in the country.

“The world’s second-largest economy and largest crude oil importer faces a difficult challenge to contain a new wave of eruptions,” said Thames Varga, an analyst at PVM. “Given Zero Cubid’s Chinese approach, it may be necessary to revise the recently announced 5.5% growth target, which would hurt growth in oil demand in a country the IEA estimated at 500,000 barrels per day in last month’s oil market to file a complaint.”

The stock markets in China and Hong Kong have published a The second day of sharp declines On concerns about the outbreak as well as reports that Beijing has signaled its willingness to provide Russia with military aid to support its invasion of Ukraine.

The Hong Kong Hang Seng Index was down 5.7%, while the Hang Seng China Enterprises’s index of large, liquid Chinese stocks was down 6.6%. In China, the CSI 300 index of Shanghai and Shenzhen shares fell 4.6%.

Falling oil prices raised U.S. stocks on Tuesday, partially reversing the falls of the previous session, even as traders prepared for the Federal Reserve rate hike on Wednesday. Ukraine is threatening to exacerbate US inflation, which has been at its highest level in 40 years.

A report by the Bureau of Labor Statistics showed an annual increase of 10 percent on Tuesday U.S. Manufacturer’s Prices In February, prepares the stage for the Fed to raise interest rates tomorrow.

The Wall Street S&P 500 index climbed 1.4% in early trading, with all market segments rising except energy. The high-tech Nasdaq Composite, which has fallen 19% to date, has added 2%.

Meanwhile, Europe’s regional Stoxx 600 index was down 0.6%. The German DAX lost 0.4% and the French Cac 40 index fell 0.7%. In London, the FTSE 100 was down 0.8%.

Russia’s invasion of Ukraine late last month has left Europe “flirting on the brink of recession,” said Peter Oppenheimer, Goldman Sachs’ chief global stock strategist, who added that fighting would boost inflation and curb growth.

69% of respondents to the Bank of America survey of fund managers conducted in the week to March 10 expected the European economy to weaken over the coming year – the highest share since 2011.

In government bond markets, the yield on the 10-year US Treasury bill fell by 0.02 percentage points to 2.11% on Tuesday, hovering around the highest level since 2019. The yield on Germany’s 10-year bond, which serves as a barometer for the eurozone Credit costs decreased by 0.02 percentage points to 0.34%.

Another report by Neil Home in London and Tabby Kinder in Bangkok

Oil falls below $100 a barrel as China lockdowns threaten demand Source link Oil falls below $100 a barrel as China lockdowns threaten demand

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