Oil loses more than 7% due to pause in talks in Ukraine and lockdowns in China

The oil prices They fell sharply on Monday, weighed down by possible progress in negotiations between Ukraine and Russia, but also by confinement in the city of Shenzhen, a technology hub in southern China.

Around 15:15 GMT, the barrel of North Sea Brent for delivery in May it lost 7.23%, to 104.52 dollars.

the barrel of West Texas Intermediate (WTI) for April delivery meanwhile slumped 7.75% to $100.89, after briefly dipping below the symbolic $100 mark.

Despite this, crude prices have risen 34% so far this year, affected by the threat of interruptions in the supply of Russian oil.

A week ago, Brent peaked at $139.13 and WTI $130.50 per barrel, levels not seen since the 2008 financial crisis. Since then, prices have fallen more than 25% for Brent and a 22% for WTI.

The fourth round of talks between Russia and Ukraine will resume on Tuesday, discussions that “raise optimism”, said Walid Koudmani, an analyst at XTB, although “any major event could trigger a further increase” in prices.

Investors are also concerned about the situation in the Chinese city of Shenzhen, a center of the technology industry, where its 17 million inhabitants are confined by a new covid-19 outbreak.

“The demand [de petróleo] may be affected by slowing Chinese economic growth,” said Susannah Streeter, an analyst at Hargreaves Lansdown.

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