Oil prices declined more than 8% on Monday on concerns over new COVID-19 lockdowns in China and the possibility of another round of peace talks between Ukraine and Russia this week. However, despite the slide, oil held above $100 per barrel. West Texas Intermediate crude futures, the U.S. oil benchmark, slipped 8.3% to trade at $104.50 per barrel, while the international benchmark Brent crude traded 7.4% lower at $111.61 per barrel.
On the other hand, the International Energy Agency has warned that three million barrels per day of Russian oil output could be at risk beginning in April. This threatens to create a global oil supply shock, and prices could remain elevated. “We still expect that Brent crude will continue to rally as the market continues to price in a rise in energy supply risk amid immense supply disruptions,” TD Securities said.
