According to ZF, West Texas Intermediate futures fell nearly 5 percent to $ 98 a barrel amid rising inventories and other commodities.
The rising number of cases in Beijing has raised concerns about an unprecedented closure of the capital, while Shanghai reported a record number of daily deaths over the weekend.
According to experts, China’s problems with Covid-19 add another source of volatility in an oil market that has already been shaken by the Russian invasion of Ukraine. The war has fueled inflation, and the European Union is discussing measures to restrict oil imports from Russia.
China has implemented blockades in several cities while pursuing a Covid Zero strategy. Residents of a Beijing neighborhood have been asked to undergo virus testing for three days, starting Monday, in an attempt to limit cases in the area. As consumer risks intensify, financial managers have become least optimistic about the WTI since April 2020, the month when prices have turned negative.
The market is ready for an additional offer, which adds to the pessimistic signs. Libya is expected to resume production in closed fields in the coming days, while the CPC oil terminal on the Russian Black Sea coast has resumed normal operations after repairing one of the two damaged anchorages during a storm .
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