Oil prices rebounded in volatile trading on Tuesday after having fallen sharply the previous day amid demand concerns due to a virus flare-up in China.
Benchmark Brent crude futures jumped 1.6 percent to $111.22 per barrel, while U.S. crude futures were up a little over 1 percent at $107.03.
Despite a relatively modest caseload, China has begun its biggest city-wide lockdown since the Covid outbreak began more than two years ago.
Millions endured a second day of lockdown in Shanghai today after authorities effectively split the country’s biggest urban area in two.
Meanwhile, Russian and Ukrainian negotiators have begun face-to-face talks in Istanbul today.
Turkish President Recep Tayyip Erdogan opened the talks by calling for an immediate cease-fire and saying that “we should expect solid outcomes.”
The talks could lead to an easing or avoidance of Western sanctions on Russian oil, but hopes for a breakthrough are low.
Investors also eye the Thursday meeting of the Organization of the Petroleum Exporting Countries (OPEC) and allies, collectively known as OPEC+, for directional cues.