Brent crude futures fell below $100 a barrel, swinging about $40 in little more than a week.
The market has been rattled by a resurgence of virus cases in China, the world’s biggest crude importer, and signs of progress in cease-fire talks between Ukraine and Russia. While concerns persist that disruption to Russian oil flows is squeezing an already tight market, OPEC and others have been quick to point out there is no shortage.
Since Russia invaded Ukraine, crude prices have been hugely volatile, with Brent last week trading in its biggest range ever. The enormous daily swings are also impacting liquidity, with open interest falling across the oil market, in turn leaving futures vulnerable to even larger intraday moves.
Brent traded as much as 7.6% lower at $98.79 a barrel.