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Oil falls $7 on Russia-Ukraine talk hopes, China lockdowns

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Ukraine and Russia report rare progress at peace talks.China’s COVID cases this year now exceed the 2021 total.UK urges Saudi Arabia to raise oil output.


LONDON: Oil prices fell around $7 a barrel on Monday as investors pinned hopes on diplomatic efforts between Ukraine and Russia to end their conflict, while a surge in COVID-19 cases in China spooked the markets.

Brent was down by $6.78, or 6%, at $105.89 a barrel at 1358 GMT and US crude fell $7.01, or 6.4%, to $102.32.

Both benchmarks have surged since Russia’s February 24 invasion of Ukraine and are up roughly 40% in the year to date.

Ukrainian and Russian negotiators are set to talk again on Monday via video link. Negotiators had given their most upbeat assessments after weekend negotiations, suggesting there could be positive results within days.

“Beside new talks between Ukraine and Russia, I guess new lockdowns in China are the reason for a negative start of the week for crude oil,” said UBS analyst Giovanni Staunovo.

A northeastern Chinese province on Monday imposed a rare travel ban on its population as the region’s Omicron outbreak helped drive China’s tally of new local COVID-19 cases so far this year higher than the total in 2021.

“Oil prices might continue moderating this week as investors have been digesting the impact of sanctions on Russia, along with parties showing signs of negotiation towards [a] ceasefire,” said Tina Teng, an analyst at CMC Markets.

Russia’s output of oil and gas condensate rose to 11.12 million barrels per day (bpd) so far in March, two sources familiar with production data told Reuters, despite sanctions.

The United States has announced a ban on Russian oil imports and Britain said it would phase them out by the end of 2022. Russia is the world’s top exporter of crude and oil products combined, shipping about 7 million bpd or 7% of global supplies.

A senior minister said British Prime Minister Boris Johnson was trying to persuade Saudi Arabia to increase its oil output, while International Energy Agency (IEA) chief Fatih Birol urged oil-producing countries to pump more.

India said it would take “appropriate” steps to calm the rise in oil prices, indicating the country could release more oil from its national stocks if required.

Indian officials also said New Delhi was considering a Russian offer to buy its crude oil and other commodities at discounted prices via a rupee-rouble transaction.

Meanwhile, investors are watching this week’s meeting of the US Federal Reserve, which is expected to start raising interest rates, a move that would boost the dollar and could push down oil prices.

A stronger greenback makes dollar-denominated oil more expensive for holders of foreign currencies.

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Zaidong, the ambassador, said China will fully back Pakistan’s counterterrorism operations.

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Reaffirming on Thursday that China will provide Pakistan with unwavering support in its fight against terrorism is Chinese Ambassador to Pakistan Jiang Zaidong.

In an interview that was broadcast on television, the ambassador promised to cooperate with Pakistan and said that China will protect the interests and safety of the citizens of the two friendly nations.

Zaidong underscored that efforts to undermine the two nations’ bilateral relationship would be thwarted by China’s cooperation with Pakistan.

Also, he emphasized how crucial China-Pakistan relations have become strategically given the changing nature of the world.

In highlighting the transformative impact of the China-Pakistan Economic Corridor (CPEC), the ambassador reaffirmed his nation’s commitment to seeing it through.

In addition to creating thousands of employment, he said, “the CPEC has facilitated significant advancements in power generation and transportation infrastructure with over $25 billion in direct investments and substantial infrastructure development.”

Zaidong stressed the value of sharing ideas and knowledge between Pakistan and China, acknowledging their shared security objectives.

Stressing that both countries have a common future, he envisioned their partnership having a greater social impact.

Concerning the terrorist attack on Chinese nationals [working on the Dasu dam], the ambassador expressed gratitude to the Pakistani people for their condolences and sympathy and commended the government for its prompt action.

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Mild rain in Lahore improves the weather

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Early on Friday, light rain in the province capital Lahore and its surrounding areas improved the weather.

But rain also led to power outages in several areas of Lahore, as multiple feeders of the Lahore Electric Supply Company (LESCO) blew, leaving whole sections of the city without power.

Details show that rain was observed in a number of locations throughout the city, including Model Town, Gulberg, Garden Town, Mall Road, Lakshmi Chowk, Gulshan Ravi, Jail Road, and Sanda.

However, the Met Office has forecasted an additional day of rain for the city during the next 24.

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The government will begin coordinated action against lawbreakers in the Katcha region

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On Friday, Mohsin Naqvi, the interior minister, announced that the government would begin a coordinated operation in the Katcha region to eradicate the miscreants for good.

He stated that collaborative efforts in the Katcha region will make use of contemporary technologies, including drones.

According to Mohsin Naqvi, all security agencies, including the police, should make sure that SOPs are fully implemented in order to protect Chinese nationals living in Pakistan.

He declared that any carelessness in this respect will not be accepted at all while presiding over a meeting to review the National Action Plan’s implementation at NACTA headquarters in Islamabad.

According to Naqvi, failure to follow the SOPs for the safety of foreign nationals will result in severe disciplinary action.

“We have to outfit our departments with cutting-edge technology to eradicate terrorism,” stated the interior minister. He declared that the provinces will receive all the assistance from the federation in this area.

Anti-state forces will be permanently driven out of the Katcha region, according to Naqvi. The interior minister expressed satisfaction with the anti-smuggling operations and stated that all ministries need to make sure that smugglers face stern legal action.

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