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Oil Prices Don’t Fully Reflect Russian Supply Risks, Vitol Says

  • Crude dropped last week on virus concerns and U.S. oil release
  • China can probably contain virus spread, says Vitol’s Muller
Bloomberg business news
WATCH: Oil dropped toward $98 a barrel in early Asian trade after losing 13% last week. Source: Bloomberg

Oil prices have fallen to levels that don’t reflect the risk of disruptions to Russian exports or the ability of China to keep the coronavirus pandemic under control, according to the world’s biggest independent crude trader.

While Brent surged to almost $140 a barrel soon after Russia’s attack on Ukraine in late February, it sunk 13% last week to around $104. That was due to the U.S. announcing an unprecedented release of strategic reserves to tame fuel prices and virus cases rising in China.