Crude oil prices continued to fall and plunged nearly 6 percent to more than $ 100, as hopes of peace talks helped reassure investors.
Weak hopes have emerged that peace talks could lead to some sort of de-escalation, a U.S. official said, showing signs that Russia might be ready for deep negotiations on Ukraine.
This led to lower oil prices for the second day in a row, after crude oil prices hit a multi-decade high due to supply concerns.
Brent’s global benchmark gross futures fell nearly 6 percent to $ 100.98 per barrel after falling more than 5 percent on Monday.
Fatih Birol, head of the International Energy Agency (IEA), has helped ease oil concerns by urging oil-producing countries to pump up more to stabilize markets affected by the war in Ukraine.
According to Reuters, while Prime Minister Boris Johnson is trying to persuade Saudi Arabia to increase oil production, a top minister said on Monday that after reports, Mr Johnson would go to OPEC heavyweight this week.
“Crude has been under pressure from Russia and Ukraine to step up its efforts to increase the number of virus cases in China and make a profit before the Fed’s decision. and we can see a bit of stability as the focus shifts to the weekly inventory report, ”said Ravindra Rao Kotak, head of Securities Merchandise Research.
On Tuesday, China saw a sharp rise in COVID-19 infections, registering 5,280 new cases – more than doubling the number of new symptomatic cases from two days earlier to two years as the spread of the virus spread rapidly in the north-east of the country.
The record figure was boosted by a nationwide rise in Omicron, with more than 3,000 home transmissions.
Ukrainian President Volodymyr Zelensky said on Monday night that negotiations with Russia, the world’s second-largest exporter, would continue on Tuesday.
Zelensky also said he had spoken to Israeli Prime Minister Naftali Bennett as part of a negotiating effort to end the war with Russia “with a just peace.”
The United States warned China on Monday that Moscow was “alive” in its opposition to invading Ukraine.