Oil plunges over 6% on easing supply concerns, China COVID cases

• Oil prices tumbled more than 6% to their lowest in almost three weeks on Tuesday as supply disruption fears eased and surging COVID-19 cases in China spurred demand concerns. 
• Brent futures fell $6.66, or 6.2%, to $100.24 a barrel by 2:01 p.m. EDT (1801 GMT), while U.S. West Texas Intermediate (WTI) crude fell $6.42, or 6.2%, to $96.59 a barrel. Brent fell as low as $97.44 and WTI hit $93.53, their lowest since Feb. 25. 
• Both contracts moved the closest to oversold territory since December. They had been in overbought conditions as recently as early March when the benchmarks reached 14-year highs after Russia invaded Ukraine. Since then, Brent has lost nearly $40 and WTI has fallen by more than $30. 
• The steep decline on Tuesday followed a statement from Russian Foreign Minister Sergei Lavrov, saying Moscow is in favour of the 2015 Iran nuclear deal resuming as soon as possible.
• The talks to revive the nuclear accord, which would lead to sanctions on Iran's oil sector being lifted and allow Tehran to resume crude exports, had recently stalled because of Russian demands. At the same time, a Ukrainian negotiator on Tuesday said talks with Russia over a ceasefire and withdrawal of Russian troops from Ukraine are ongoing. Russian Foreign Minister Sergei Lavrov unexpectedly demanded sweeping guarantees that Russian trade with Iran would not be affected by sanctions imposed on Moscow over its invasion of Ukraine - a demand Western powers say is unacceptable and Washington has insisted it will not agree to. 
• Further adding price pressure, China saw a steep jump in daily COVID-19 infections, raising renewed worries about the recovery from the coronavirus pandemic.

(Source: Reuters)