Oil prices fell nearly 2% in early Asian trade on Monday, after Chinese officials said over the weekend their commitment to a tough approach to containing the Corona virus, thwarting hopes of a recovery in demand for oil. oil in the world’s largest crude oil importer.
THE future on Brent crude oil fell $ 1.58, or 1.6 percent, to $ 96.99 a barrel by 23:36 GMT, after hitting a low of $ 96.50 in precedence.
US West Texas Intermediate Crude Price reached $ 90.84 per barrel, in drop of $ 1.77, or 1.9%, to hit a low during the session at $ 90.40 a barrel at the start of the session.
“Oil prices dropped sharply after Chinese officials pledged to adhere to the policy (zero Covid) with the increase in cases of corona in China, which could lead to more restrictive measures, “said CMC Markets analyst Tina Ting. This dampens the prospects for growth in demand.
He added that the dollar’s rise is weighing on oil prices.
Four Federal Reserve policymakers on Friday indicated they are still considering a smaller rate hike at their next policy meeting, despite strong employment data.
Brent and WTI rose 2.9% and 5.4% respectively last week, as rumors of a possible end to the severe lockdowns in China pushed up Chinese stock markets and commodity prices prime although no changes have been announced.
Trade data from China, the world’s second largest economy, later on Monday could show further slowdown in exports as global demand continues to decline.
“The market is still facing signs of weak oil demand due to already high prices and a weak economic environment in developed markets,” they said. in ANZ Research analysts note.
They added that question in Europe and the United States dropped to 2019 levels.
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