Oil prices posted massive weekly losses during the week ending April 1 over easing supply worries with the US decision to release 180 million barrels of oil from its strategic reserves, relatively positive Russia-Ukraine peace talks and demand fears as China decided to lock down its financial hub Shanghai over rising COVID-19 cases.
Brent crude traded at $103.41 per barrel at 1200 GMT on Friday, posting a 13.8% decrease from the Monday session that opened at $119.90 a barrel.
American benchmark West Texas Intermediate (WTI) registered at $98.83 per barrel at the same time on Friday, declining 12.5% relative to the opening price of $112.92 a barrel on Monday.
Prices fluctuated in a broad range during the week, with Brent recording an almost 15% decline and WTI a 13.3% loss between their lowest and highest levels.
Oil markets started the week with demand fears after Shanghai, China's most populous city with over 28 million population, was put under a two-part lockdown to ensure potential risk for an outbreak. Chinese authorities late on Thursday extended the lockdown in different parts of the city.
At least 200,000 barrels per day (bpd) of demand is expected to be impacted for the duration of the restrictions.
Prices dropped on Tuesday around $10 a barrel after Russia pledged to significantly decrease its military activities in the direction of Ukraine's Kyiv and Chernihiv to increase trust for future negotiations, the country's Deputy Defense Minister Aleksandr Fomin said at a press briefing after a fresh round of Russia-Ukraine peace talks held in Istanbul.
The head of the Russian delegation at the peace talks with Ukraine said on Wednesday that some progress was made at this week's meeting in Turkiye.
Prices posted further declines on Friday after the US Administration announced to release the largest ever amount from its strategic oil reserves, corresponding to almost half of the country's oil reserves together with the previous pledges of the administration.
US President Joe Biden said the release of 1 million bpd for six months, which is 180 million barrels in total, will drive down prices at the pump and 'ease the pain that families are feeling.'
The member countries of the International Energy Agency will convene at noon on Friday to discuss a further emergency oil release on top of their 60 million barrels.
By Sibel Morrow
Anadolu Agency
energy@aa.com.tr