Chinese prospects drive the market down

Oil prices slid on Tuesday, ICE Brent lost 2.4% to end at $104.97/b. NYMEX WTI went 2.6% down to settle at $102.41/b.

Market participants continue to monitor the situation in China, where authorities could impose new restrictions to slow Covid-19 spreading but also the economic activity as a collateral damage. Lockdowns are slightly easing in Shanghai, but in Beijing the mass-test policy does not help to tame virus outbreak so far.

President von der Leyen of the European Commission should present the new package sanction against Russia today. It should contain a ban on import of Russia oil, a prospect that has been supporting market prices for several days.

American Petroleum Institute weekly report showed that, over the last week, crude oil stocks shrank by 3.48Md, more than expected, as the market are going up this morning, by +1.5% for the NYMEX WTI front month. Diesel and gasoline inventories are also down.