Brent crude oil closed at less than $100 for the first time in nearly three weeks.

A barrel of Brent crude oil delivered from the North Sea in May closed at less than $100 on Tuesday for the first time since the second day of Russia's invasion of Ukraine almost three weeks ago.

Brent prices fell 6.53% to $99.91, while West Texas Intermediate (WTI) barrels fell 6.37% in April, down to $96.44.

“After falling more than 20% from last week's peak, crude oil entered a bearish zone,” said Fawad Razaqzada of ThinkMarkets.

Stephen Schork (Stephen Schork) of the Schork report claimed on Tuesday that “China had the greatest impact on prices”; China's decision to order the confinement of tens of millions of people to contain the coronavirus outbreak “clearly raises market concerns about demand” for crude oil.

China is the world's largest oil importer, producing 10 million barrels per day.

“The risk for Chinese demand is realistic,” said Louise Dickson of Rystad Energy in a note pointing out that the lockdown is likely to reduce the consumption of half a million barrels of crude oil per day.

However, Bart Melek of TD Securities said: “China has demonstrated its ability to quickly curb the spread of the virus in the past, and its impact on energy demand has been seen in the short term.”

According to ActivTrades' Ricardo Evangelista, the price of black gold also fell in response to the hope that “negotiations between Russia and Ukraine will lead to a narrowing of the dispute.”

EMB-TU/DT//MR/ATM