Jakarta, CNBC Indonesia – World oil prices are down again. Now the price of black gold is compact below US $ 100/barrel.
On Wednesday (16/3/2022) at 07:17 WIB, the price of Brent oil was at US$ 99.28/barrel. Down 0.63% from the previous day.
Meanwhile, the light sweet type or West Texas Intermediate (WTI) costs US$ 95.96/barrel. Reduced by 0.5%.
Developments surrounding the Russo-Ukrainian war are still a driving force for oil prices. Yesterday, negotiators of the two sides continued to negotiate to reach a ceasefire and withdrawal of Russian troops and Ukrainian soil.
“Negotiations are ongoing. The main aim of the negotiations is a ceasefire and troop withdrawal,” Mykhailo Podolyak, one of the negotiators from the Ukrainian side, said in a tweet.
Hopes of peace in Ukraine have given investors (and the rest of the world) some relief. Markets also hope sanctions against Russia can be lifted if peace is reached. One of these sanctions is oil exports.
Without oil from Russia, the world market is on fire. Understandably, the Red Bear Country is one of the world’s major oil producers. The impact will be felt if Russian oil is absent from the global market.
In addition, the correction in oil prices also occurred due to the risk of falling demand, especially in China. Coronavirus pandemic (Coronavirus Disease-2019/Covid-19) who returned to violence forced the Bamboo Curtain State government to impose territorial quarantine (lockdown) in a number of areas.
“Lockdown in China is estimated to reduce oil consumption by 0.5 million barrels/day. Consumption will be under pressure because of higher energy prices,” said Louise Dickson, senior oil market analyst at Rystad Energy.
CNBC INDONESIA RESEARCH TEAM
(aji / aji)
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