Oil falls below $100 on Russia-Ukraine talks, demand concerns

Oil storage containers are seen, amid the coronavirus illness (COVID-19) pandemic, in Los Angeles, California, U.S., April 7, 2021. REUTERS/Lucy Nicholson/Recordsdata

LONDON, March 16 (Reuters) – Oil fell under $100 a barrel in a unstable session on Wednesday, because it got here beneath stress from indicators of progress in Russia-Ukraine peace talks and a closely-watched report that minimize its forecast of world demand.

Ukraine’s president mentioned the positions of Ukraine and Russia have been sounding extra sensible, however time was wanted. learn extra Russia’s international minister mentioned some offers with Ukraine have been near being agreed. learn extra

“Fears of a provide disruption have been tempered by tentative indicators of progress in ceasefire talks between Russia and Ukraine,” mentioned Stephen Brennock of oil dealer PVM.

“That mentioned, an finish to hostilities nonetheless looks as if a great distance off.”

Brent crude fell 54 cents or 0.5% to $99.37 a barrel by 1037 GMT, having traded as excessive as $103.70 earlier. U.S. West Texas Intermediate (WTI) crude slipped 96 cents or 1% to $95.48.

The worth falls additionally adopted the discharge of the Worldwide Vitality Company’s month-to-month report that minimize its oil demand forecast for 2022. . A day earlier, the Group of the Petroleum Exporting Nations held its forecast regular.

Crude settled under $100 on Tuesday, the primary time since late February. Buying and selling has been unstable since Russia’s invasion of Ukraine on Feb. 24, with costs hitting a 14-year excessive on March 7, however Brent has since fallen almost $40 a barrel.

The U.S. Federal Reserve is anticipated to lift charges for the primary time in three years afterward Wednesday and provides steerage on future tightening. Traders expect the central financial institution to lift charges by at the least 25 foundation factors.

Oil had additionally come beneath stress this week from issues of slowing demand in China because it takes measures in opposition to the Omicron coronavirus variant. These fears appeared to ease on Wednesday, as figures confirmed fewer new instances. learn extra

Apart from the Fed resolution, in concentrate on Wednesday would be the newest spherical of U.S. stock information due at 1530 GMT from the Vitality Info Administration. Analysts anticipate a 1.4 million barrel drop in crude shares.

Extra reporting by Emily Chow; Modifying by Louise Heavens and Barbara Lewis

: The Thomson Reuters Trust Principles.