Oil resumed its decline after Iran carried out a missile strike in Iraq following the suspension of nuclear talks, while Russia’s bombardment of Ukraine prompted more calls to sideline the OPEC+ producer.
Futures in New York fell below $108 a barrel after rising 3.1% Friday following a tumultuous week that saw prices whipsaw wildly. The halt of nuclear talks dashed hopes for a swift return of more supply to a tight market reeling from the war in Ukraine. Senior American and Chinese officials meet Monday as the Biden administration seeks to enlist China to help end the crisis.
That heralds the start of a jampacked week that will test whether Russia plans to repay its international debt and will likely see the Federal Reserve raise interest rates for the first time since 2018, potentially strengthening the dollar. Global markets have been in turmoil as prices of energy, metals and food soar to record highs amid widespread condemnation of Russia. A flare-up of virus cases in China is also causing some concerns about oil demand.