China’s growing COVID-19 lockdowns coupled with OPEC’s announcement that the existing sanctions against Russia might create one of the worst ever oil supply shocks sent crude prices falling Monday to their lowest level in more than 6 weeks.
For the first time, global crude oil settled under $100.
It came after OPEC informed the European Union of what it expected from the current sanctions and future ones against Russia as it continues its struggling war against Ukraine. OPEC suggested it would be impossible to replace the lost volumes and that it would not pump more for the market.
West Texas Intermediate crude for May delivery dropped $3.97 or 4% to settle at $94.29 a barrel on the New York Mercantile Exchange. The price was the lowest since Feb. 25.
Global benchmark Brent crude for June delivery dropped 4.2% or $4.30 and closed at $98.48 on ICE Futures Europe, its lowest price since March 16. The drop sent Brent crude down nearly 15% in the past two weeks.
The sour oil prices were felt in trading of Oklahoma energy stocks where most suffered losses on Monday. Devon Energy and NGL Energy Partners dropped 4%, LSB Industries fell 10% and Ovintiv lost 5%.
