Breaking News
Investing Pro 0
Free Webinar - The Role of Psychology in Trading - Thursday, December 8, 2022 | 04:00PM EST Enroll Now

Crude Oil Slumps on Growing Confidence Over Ukraine/Russia Peace Talks

Commodities Mar 29, 2022 09:13AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
LCO
+0.29%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CL
+1.42%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
GPR
+0.67%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Peter Nurse   

Investing.com -- Oil prices slumped Tuesday, continuing the sharp losses of the previous session as peace talks between Ukraine and Russia appeared to make progress, potentially bringing to an end the conflict which has roiled global supplies.

By 9:15 AM ET (1315 GMT), U.S. crude futures traded 6% lower at $99.58 a barrel, while the Brent contract fell 5.6% to $103.39. Both benchmark contracts lost around 7% on Monday. 

U.S. Gasoline RBOB Futures were down 4.1% at $3.0648 a gallon.

Negotiators from both Russia and Ukraine sat down in Istanbul earlier Tuesday for the first face-to-face talks in nearly three weeks. 

Confidence is growing that these discussions could result in a breakthrough after reports indicated that Moscow was prepared to sharply cut operations near the Ukraine capital Kyiv as evidence of goodwill.

In addition, Ukraine proposed adopting neutral status in exchange for security guarantees, meaning it would not join military alliances or host military bases, as well as a 15-year consultation period on the status of annexed Crimea.

Russia’s invasion of Ukraine and the associated Western sanctions on the world’s second-largest exporter of crude had driven prices above $100 a barrel earlier this month. 

Crude had sold off sharply on Monday on the news that Shanghai, China’s financial hub, would be locked down in two stages over an eight-day period to carry out Covid-19 testing after it reported a new daily record for asymptomatic infections.

China is a major source of demand for the crude market, being the world’s largest importer of oil, and fears of reduced economic activity weighed heavily.

Still, there remains a great deal of uncertainty in the crude oil market, with a Ukraine peace deal still undetermined, the Covid-19 situation in China remaining very fluid and the overall supply situation still very tight.

Kazakhstan added to the situation after the country’s energy ministry stated that the OPEC+ signatory is set to lose at least a fifth of its oil production for a month after storm damage to mooring points used to export crude from the Caspian Pipeline Consortium.

The Organization of the Petroleum Exporting Countries (OPEC) and allies, known as OPEC+, meets on Thursday, to discuss future output levels. 

The group has come under increasing pressure to pump more crude since Russia invaded Ukraine, but the energy ministers of Saudi Arabia and the United Arab Emirates, key members of OPEC+, said on Tuesday they should not engage in politics.

This suggested that the group will stick to its previously announced plan of increasing output by 400,000 barrels a day from May, even if the Kazakhstan news makes it even less likely to achieve than usual.

Elsewhere, the American Petroleum Institute reports its weekly inventory data at 4:30 PM ET, after recording a drop of just over 4 million barrels last week.

Crude Oil Slumps on Growing Confidence Over Ukraine/Russia Peace Talks
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Borys Kh
BK001 Mar 29, 2022 9:43AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Russia is only taking time to reassemble the troops. They've lost a lot of people and weaponry and simply don't have enough force to continue offensive on Kyiv. But they'll focus on Donbass. So, no chance for a peace.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email