Oil prices witnessed a noticeable decline of about 4% yesterday, pushing the global benchmark, Brent crude, to retreat from the level of $ 100 a barrel on fears that the Covid-19 pandemic will reduce demand in China, and while the International Energy Agency countries plan to release quantities of Record of ore from strategic reserves.
According to Arab Net, the US benchmark, West Texas Intermediate, closed at its lowest level since February 25, the day after the start of the Russian invasion of Ukraine.
Brent contracts ended the trading session as low as $4.30, or 4.2%, to record at $98.48 a barrel, the lowest closing level since March 16.
US crude contracts closed down $3.97, or 4.0%, to $94.29
Demand for fuel in China, the world's largest oil importer, has been slowed by COVID-19-related shutdowns in Shanghai, the country's financial hub.
The city began easing the closure in some areas yesterday, despite recording a record level of new infections with Covid-19, exceeding 25,000.
To help offset a shortfall in Russian crude after imposing sanctions on Moscow, IEA member states, including the United States, will release 240 million barrels of strategic oil reserves over the next six months.
Analysts at JPMorgan said that the volumes of withdrawals from the US Strategic Petroleum Reserve are equivalent to 1.3 million barrels per day over the next six months, which is enough to make up for a shortfall of one million barrels per day in the supply of Russian oil.
Oil prices came under additional pressure from the dollar's rise for the eighth consecutive session against a basket of competing currencies
