The negotiators between the two countries plan to hold a videoconference this Monday and the parties were more optimistic. In addition to the new talks between Russia and Ukraine, “new quarantines and restrictions in China are the reason for a negative start to the week for crude,” said UBS analyst Giovanni Staunovo.
China, the world’s largest oil importer and second-largest consumer after the United States, is seeing a sharp rise in COVID-19 cases as the omicron variant spreads to more cities, triggering outbreaks in Shanghai and Shenzhen. Daily case numbers hit two-year highs with 1,437 new confirmed coronavirus infections as of March 13.
“This week market participants are closely following the evolution of Russian oil exports. So far this month, oil flows have not been interrupted,” Staunovo said. Investors are also closely following the efforts of different countries to seek alternative sources of oil supply to the Russian offer.
Russian production of oil and gas condensate rose to 11.12 million barrels per day so far in March, despite sanctions on Russian crude. It is worth remembering that last week, the United States announced a ban on Russian oil imports and Britain said it would phase them out until the end of the year. Russia is the world’s largest exporter of crude oil and oil products combined, shipping about 7 million barrels a day or 7% of global supplies.
Source: Ambito
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