Crude oil prices continued to fall today, with WTI futures slipping below $100, while Brent crude futures slipping $106.
As of 7:42 p.m. Thai time, the West Texas Intermediate (WTI) crude oil contract was delivered in May. It traded on the NYMEX minus $6.69, or 6.05%, to $99.27/barrel. The price of Brent crude oil (BRENT) minus $6.64, or 5.90%, to $105.84 a barrel.
The price of oil fell After Russian officials said a new round of peace talks with Ukraine were constructive today. The talks, held in Istanbul, Turkey, lasted about three hours, with the aim of reaching a ceasefire agreement.
Meanwhile, Russian state news agency TASS, citing the Russian Defense Ministry, said: Russia will drastically reduce its military operations around Kiev, the Ukrainian capital. including Chernihiv
In addition, oil prices were also affected by China’s announcement of lockdown measures on Shanghai. which is the financial center to control the spread of COVID-19 This made investors worried that it would affect Chinese oil demand. which is the world’s largest crude oil importer
Oil prices have also been pressured by the European Union’s failure to agree on plans for Russian oil sanctions. including reports that Caspian Pipeline Consortium (CPC) has begun resuming some of its oil exports. After the previous export suspension due to damage from the storm
In addition, US National Security Adviser Jake Sullivan said the United States and its allies have made progress in negotiating the Iran nuclear deal. which, if such an agreement is reached It will pave the way for Iran to return to export oil in the market.
Investors keep an eye on the meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies. Or OPEC Plus on March 31, which is expected that OPEC Plus will still have a resolution to adhere to the original agreement. with a slight increase in oil production in May
In the past, OPEC Plus has increased oil production by only 400,000 barrels/day every month. Since August 2021, OPEC Plus also agreed last year to increase oil production by 432,000 barrels per day in May this year.
The United States and several other oil-importing nations have called for OPEC+ to increase production beyond current levels. while oil prices rose above $139/barrel this month. This is the highest level since 2008 after Russia’s military invasion of Ukraine.
The source revealed that Saudi Arabia will continue to increase production according to the original resolution. because they do not want to signal conflict with Russia which is also a member of OPEC Plus
