This article is an on-site version of our Energy Source newsletter. Sign up here to get the newsletter sent straight to your inbox every Tuesday and Thursday
One geopolitical game changer to start:
Welcome back to another Energy Source.
US oil prices dropped below $100 a barrel on Monday, down from a recent peak of nearly $140 a barrel last week after American sanctions on Russian crude were announced.
What’s behind the sudden sharp decline in crude prices? Surging Covid cases in China spooked markets on Monday. Beijing’s moves to quickly contain the outbreak, including a lockdown in Shenzhen, a big global trading and tech hub, threaten to dent demand.
Traders have also become less worried about an imminent western blockade of Russian oil, especially as Ukraine’s leaders signal increased hope around ceasefire talks with Moscow.
But the wild price moves signal an oil market still in crisis.
On to today’s newsletter. Our first item dissects BP’s always closely watched…
