World Crude Oil Prices Drop to Levels Below 100 US Dollars, What Causes It? page all

JAKARTA, KOMPAS.com – Oil prices world crude experienced a significant decline in the afternoon trading session today, Tuesday (15/3/2022).

Refers to data Bloomberg, oil prices The United States’ benchmark crude, WTI, and global benchmark, Brent, both slumped to levels below US$100 per barrel.

Recorded in today’s afternoon trading session, crude oil prices The WTI benchmark slumped 8.23 ​​percent to $94.53 a barrel.

Also read: World Oil Prices Rise, Pertamina Can Raise Pertamax Prices to Approach Competitors’ Prices

Meanwhile, the price of global benchmark crude oil, Brent, fell 7.81 percent to a level of 98.55 US dollars per barrel.

This is the first time the world crude oil price has been at the level of 100 US dollars per barrel since March 1 yesterday.

In fact, during the trading session on March 6 yesterday, the price of world crude oil, the WTI reference, had reached its highest level in the last 14 years, at 130.5 US dollars per barrel.

Meanwhile, at the beginning of last week, the price of Brent crude oil had jumped to the level of 139 US dollars per barrel, but now the trend has continued to show a decline since last weekend.

As is known, the global oil market has become very volatile since Russia invaded Ukraine on February 24, 2022.

Also read: Russia-Ukraine Negotiations and China’s Lockdown Make World Oil Prices Fall

However, world crude oil prices began to decline after the US stated that Russia was showing signs of being willing to carry out substantive negotiations regarding Ukraine.

The Russian and Ukrainian negotiators held talks at the weekend and continued on Monday.

The negotiations are said to indicate the possibility of a positive outcome in the next few years.

“However, apart from the new talks between Ukraine and Russia, I think lockdown in China was the reason for the negative start of the week for crude,” said UBS analyst Giovanni Staunovo. CNBCTuesday.

China is the world’s largest importer of crude oil and the second largest consumer after the United States.

But the country has seen a spike in Covid-19 cases as the highly contagious variant of Omicron spread to more cities, sparking outbreaks from Shanghai to Shenzhen.

China’s daily new caseload of Covid-19 has reached its highest level in two years.

China also applies lockdown widely to curb the spread of Omicron, which could hamper crude oil demand by the country.

“Oil prices may continue to weaken this week as investors have digested the impact of sanctions on Russia, along with the parties showing signs of negotiating towards a ceasefire,” said Tina Teng, analyst at CMC Markets.

Also read: Not many Russian oil imports, why do gasoline prices in the US continue to rise?

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