Brent crude futures fell to $116.00 a barrel and were trading down $3.88, or 3.2 percent, at $116.77 at 0131 GMT.
And US West Texas Intermediate crude futures recorded its lowest level, reaching 109.30 dollars a barrel, and fell by 3.92 dollars, or 3.4 percent, to 109.98 dollars.
Both contracts rose 1.4 percent on Friday, marking their first weekly increase in three weeks, with Brent rising more than 11.5 percent and West Texas Intermediate crude 8.8 percent.
“The Shanghai closure triggered a fresh sell-off from investors who were frustrated because they had expected to avoid such a closure,” said Kazuhiko Saito, chief analyst at Fujitomi Securities Co., Ltd.
The Shanghai city government said on Sunday that all businesses and factories would shut down or have employees work remotely as part of a two-phase shutdown over nine days, following the city set a new record for asymptomatic cases.
Public transportation, including transportation services, will also be suspended during the closure, further reducing fuel demand.
