Oil prices climbed back above $100 U.S. a barrel as peace talks between Ukraine and Russia appear to have stalled.
Futures in New York closed up 8.4% yesterday (March 17) to settle at $102.98 U.S. Markets rallied after a Kremlin spokesman said a report of major progress in negotiations over Ukraine was “wrong,” but that discussions will continue.
The war has severely disrupted Russian oil flows, and the International Energy Agency (IEA) predicted output from the key OPEC+ member will decline by about a quarter in April.
Global benchmark Brent crude oil settled above $106 U.S. per barrel, swinging by more than $5 U.S. intraday for 16 consecutive sessions -- the longest such run ever recorded.
Oil markets are also factoring in a virus resurgence in China. Traffic congestion levels in partially locked-down Shanghai are more than a third lower than a year ago and there are also restrictions on movement in the manufacturing centre of Shenzhen and in Jilin province.
