By Yuka Obayashi

TOKYO, Reuters – On Tuesday, oil prices fell to a 2-week low due to ceasefire talks between Russia & Ukraine. Also on Tuesday were concerns over China’s demand after a rise in COVID-19 case numbers.

After falling 5.1%, futures plunged $4.20 (or 3.9%) to $102.70/barrel by 0125 GMT

U.S. West Texas Intermediate crude (WTI), fell below $100 for the first-time since March 1. It dropped $4.30, or 4.2%, to $98.71 per barrel. This follows a 5.8% drop the day before.

Toshitaka Tazaawa, an analyst with Fujitomi Securities Co Ltd. stated that there were positive signs in Russia-Ukraine’s ceasefire talks. This boosted hopes for tightening in global crude markets.

“Fresh lockdowns that were used to curtail the COVID-19 pandemic of China raised concern about slowing demand”, he said.

Mainland China reported a dramatic rise in COVID-19 infection rates on Tuesday. The number of new symptomatic infections more than doubled in a single day, and is now at a two year high. This was due to a rapid spread of the virus in China’s northeast.

Volodymyr Zeleskiy, Ukraine’s president, said Monday evening that the negotiations with Russia — Russia is second in crude oil exports – will go on Tuesday.

Zelenskiy said that he also spoke to Naftali Bennett, the Israeli Prime Minister as part of negotiations for a cease-fire with Russia.

After “intense” negotiations on Monday, the United States warned China against supporting Moscow’s invasion of Ukraine.

Fatih Birol (International Energy Agency) on Monday urged countries that produce oil to continue pumping more fuel to support markets that have been affected by the conflict in Ukraine.

Boris Johnson, the British Prime Minister, is trying to convince Saudi Arabia to raise its oil production, a top minister stated Monday. This was in response to reports that Johnson will travel to the OPEC heavyweight next week.