Crude oil prices extended rally after giving up most of its gains following Russia invasion of Ukraine. The catalyst for the retreat from loss is due to potential demand cut be at home.
The U.S. WTI is trading at $97.23 per barrel while Brent is trading at $101.21 per barrel.
Prices of WTI extended heavily in past session after losing more than 20% of gains last seen in 2008.
Besides possible cutback of demand from China amid lockdowns dire to surging COVID-19 cases, there are still concerns that the disruptions to Russian crude flows will squeeze an already tight market, and the conflict is raging on despite efforts for a cease-fire.
Meanwhile, U.S. President Joe Biden will travel to Brussels next to meet with NATO allies. Russian President Vladimir Putin told European Council President Charles Michel that Ukraine “is not showing a serious attitude toward finding mutually acceptable solutions” in talks on ending the fighting, the Kremlin said.
Russian Foreign Minister Sergei Lavrov said sanctions on his country won’t affect the Iranian nuclear deal, sparking optimism an agreement could be reached that would allow the resumption of official oil flows from the Persian Gulf producer.
