Brent Update

On Monday, April 11, oil trading ended with a decline. A barrel of Brent rose 2.95% to $99.25. In the first half of the day, the price dropped to $97.56 per barrel. The oil market remains under pressure due to plans to sell crude oil and oil products from strategic reserves.

The lockdown in China due to the coronavirus outbreak added fuel to the fire. It is not known when the lockdown in Shanghai will be lifted. Despite the almost complete lockdown of the city, the number of asymptomatic patients has been growing rapidly over the past week and a half. There are fears that the omicron wave will spread to other cities. In this case, China will introduce quarantines in other cities, which will negatively affect production. Market participants fear that China's economy will begin to slow down and consume less oil.

On Tuesday, April 12, at auction in Asia, Brent crude is trading above $100 per barrel. The $96-97 zone is a strong support. The situation in China and sanctions against Russia are deterring sellers from taking action. Most likely, the price will remain trading above $96 per barrel in the next two days.