Logo of Phnom Penh Post newspaper Phnom Penh Post - Price of crude oil drops into lethargic mood

Price of crude oil drops into lethargic mood

Content image - Phnom Penh Post
Analysis by G-Link business manager Nhim Kosol.

Price of crude oil drops into lethargic mood

The price of oil has fallen around 12 per cent from its prior high of $111.82 a barrel to Tuesday’s low of $98.48.

The dip in price was largely influenced by the ongoing negotiations to end the Russia-Ukraine war and increasing Covid lockdowns in China – which weakened global oil demand in March.

The trend is likely to continue through April and May.

Reuters reported that Shanghai on Wednesday extended the city’s shutdown to some western parts earlier than planned following 5,982 new local Covid cases.

Shanghai’s two week long intermittent lockdown launched on Sunday will be among the most significant in China thus far this year, due to the size of the city’s more than 25 million population.

This has the potential to lower the daily demand for oil for the duration of the restrictions.

Meanwhile, peace talks between Russia and Ukraine were “constructive” according to multiple reports, including one from Russian state news agency Tass.

Following the negotiations in Turkey on Tuesday, Russia has pledged to scale back military activity in Kyiv and northern Ukraine.

OPEC is scheduled to meet Thursday to decide on output levels from May onwards.

While oil prices rose to more than $110 per barrel in early March, OPEC remained committed to its initial production increase of 400,000 barrels a day.

For this week’s trading recommendation, oil investors can place buy or sell positions in the range of $100-$110 per barrel.

Content image - Phnom Penh Post

MOST VIEWED

  • Hong Kong firm done buying Coke Cambodia

    Swire Coca-Cola Ltd, a wholly-owned subsidiary of Hong Kong-listed Swire Pacific Ltd, on November 25 announced that it had completed the acquisition of The Coca-Cola Co’s bottling business in Cambodia, as part of its ambitions to expand into the Southeast Asian market. Swire Coca-Cola affirmed

  • Hun Sen gets Covid, shuns G20, APEC summits

    Prime Minister Hun Sen said he has tested positive for Covid-19 in Indonesia, where he is slated to attend the G20 summit in his capacity of the ASEAN chair. In a social media post addressing the Cambodian public, he said: “Before leaving Cambodia, I always

  • Moody’s sets outlook rating to ‘negative’ for Cambodia

    US global rating agency Moody’s Investors Service Inc on November 15 announced that it downgraded Cambodia’s outlook from “stable” to “negative” and maintained its B2 local and foreign currency issuer ratings. “The negative outlook reflects a deteriorating external position as illustrated by the severe

  • Korean first lady paves way for ill boy’s surgery

    A 14-year-old boy with congenital heart disease who was lucky enough to meet with South Korean first lady Kim Keon-hee may get the chance of a lifetime and receive surgery and treatment at Asan Medical Center in Seoul, South Korea. After seeing his plight, many

  • Hun Sen’s Covid infection caused by ‘weakened antibody’ after summit

    Prime Minister Hun Sen said exhaustion from heavy workload before and during the recent ASEAN Summit may have led to him contracting Covid-19 due to his weakened immune system, while rejecting speculations that the infection was caused by leaders of some countries who did not

  • Kingdom’s rice crowned world’s No1

    Cambodia’s Phka Rumduol jasmine variety has been crowned the World’s Best Rice for the fifth time at the TRT (The Rice Trader) World Rice Conference in Phuket, Thailand on November 17, according to leaders of the Kingdom’s apex rice industry body. Phka Rumduol