WTI attempts to break below $100bbls

• West Texas Intermediate (WTI) crude oil is under pressure to test $100bbls. 
• Supply vs demand concerns is being weighed by traders.

West Texas Intermediate (WTI) crude oil was bleeding out on Tuesday as the European Union mulls new sanctions on Russia, mounting up the supply concerns in the oil market. 

However, the EU has yet to move against the oil and gas imports from the country that provide much of its energy. Spot WTI is lower by some 2.9% and had travelled between a high of $105.57 and a low of $99.92.  WTI crude for May delivery closed down US$1.32 to US$101.96 per barrel.

Reuters reported that ''the EU may move to ban imports of Russian coal following reports of large-scale civilian murders by Russian troops that occupied areas near Kyiv, while it and the United States are also weighing additional measures to lessen Russia's ability to wage war against its neighbor.''

Additionally, ''China's decision to extend a quarantine on Shanghai, one of the country's most important commercial centres, also raised demand concerns as the country reports rising Covid-19 infections,'' an article by Reuters read.

Staying with Chinese demand, analysts at TD Securities' tracking of Chinese mobility had indicated a 10% slump in road traffic, but the analysts explained they ''now see a sign of stabilization in Chinese mobility according to a weighted average of congestion indicators for the 15 largest cities by vehicle registrations. Notwithstanding, changes in Chinese demand pale in comparison to the persistent underproduction from OPEC+, and certainly to the continued impact on Russian oil exports from self-sanctioning highlighted by Urals trading at a record discount.''