KEY POINTS
• The Russia-Ukraine war, now into its third week, has caused oil prices to be volatile in the past week or so.
• Crude prices fell back drastically in the beginning of this week, dropping more than 27% below recent highs to less than $100 a barrel.
• China has started to clamp down on the Covid spike – the worst since 2020 - ordering lockdowns and a pause in manufacturing in some cities.
• Markets probably also took into account Russia’s Foreign Minister Sergei Labrov indicating that Moscow would allow the Iran nuclear deal to go ahead — that would allow the resumption of oil supply into the market.
