Oil fall in Russia-Ukraine talks, US cargo data

Oil storage containers found in Los Angeles, California, USA, on April 7, 2021 amid the outbreak of corona virus disease (COVID-19). REUTERS / Lucy Nicholson / Files

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  • Russia says some agreements will be signed with Ukraine
  • The number of new cases of COVID-19 in China has almost halved
  • IEA lowers 2022 oil demand growth forecast
  • EIA figures show higher-than-expected growth in inventory

March 16 (Reuters) – Oil plunged on Wednesday in another volatile session as traders faced expected progress in Russia-Ukraine peace talks and a surprising increase in US goods.

At noon in New York, global benchmark Brent was slightly lower and US crude was slightly higher.

The oil market has been on a roller-coaster for more than two weeks, trading at a wide range of several dollars a day.

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On Wednesday, worldwide Brent crude was between $ 97.55 and $ 103.70 and was down $ 1.41 to $ 98.50 a barrel at 1:21 pm EST (1721 GMT). US West Texas Intermediate (WTI) crude was down 54 cents at $ 95.87 a barrel.

Last week’s frantic rally saw Brendan cross $ 139 a barrel over concerns about an extended disruption to Russian supplies. Now, a layer of sales has pushed the price too low, but some analysts have warned that this reflects hope that the war will end soon.

“We live in the headlines here,” said Robert Yower, Mizuho’s energy future director.

The United States and other countries have imposed tough sanctions on Russia since it invaded Ukraine two weeks ago. This affected Russia’s daily trade of 4 to 5 million barrels of crude oil.

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Brent rallied 28% in six days, then fell 24% in the next six sessions counting on Wednesday. Several factors drove the turnaround, including the moderate hopes for a Russia-Ukraine peace deal and the faint signals of progress between the US and Iran reviving the 2015 agreement. Ambitions.

In addition, Chinese demand is expected to decline due to an increase in corona virus cases there, although figures have shown fewer new cases and Chinese stimulus beliefs have boosted stocks.

The International Energy Agency (IEA) says Russia’s three million barrels a day of oil and gas may not reach the market since April, and sanctions have put buyers on hold.

The Paris-based IEA said in a statement that “these losses could be exacerbated if sanctions or public audits are accelerated,” which also showed a reduction in its oil demand forecast for 2022.

U.S. inventories rose 4.3 million barrels, while stocks in Cushing, Oklahoma and Hub rose against expectations of a loss, allaying concerns about lower stock there.

Crude oil fell below $ 100 on Tuesday, the first time since late February. On March 7, prices rose to a 14-year high.

Then on Wednesday, the Federal Reserve is expected to raise US interest rates for the first time in three years and provide guidance on future austerity. Investors expect the central bank to raise rates by at least 25 basis points.

Signs of progress in the Russia-Ukraine peace talks added a harsh tone. The President of Ukraine said that the position of Ukraine and Russia sounds very realistic, but it took time. Russia’s Foreign Minister has said that some agreements with Ukraine are close to being agreed. read more

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“Fears about a supply disruption have been allayed by temporary signs of progress in the ceasefire talks between Russia and Ukraine,” said Stephen Brenak of PVM, an oil broker.

“That being said, it looks like the end of hostility is still a long way off.”

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Additional Report by Emily Chow; Editing by Barbara Louis, Louis Heavens, David Gregorio and Tim Ahman

Our standards: Thomson Reuters Trust Principles.

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