June 13, 2022 09:37
Oil prices fell more than $2 on Monday following a surge in COVID-19 infections in the Chinese capital dashed hopes of a rapid increase in China’s demand for fuel, while concerns regarding global inflation and economic growth further depressed the market.
Brent crude futures fell $1.81, or 1.48 percent, to $119.95 a barrel by 0443 GMT, while US West Texas Intermediate crude recorded $118.81 a barrel, down $1.86, or 1.54 percent. Both futures contracts fell more than two dollars earlier in the session.
Prices fell following Chinese officials warned on Sunday of a “vicious” outbreak of COVID-19 in the capital and announced plans to conduct mass testing in Beijing until Wednesday. Fears of an interest rate hike following a sharp rise in US inflation data on Friday also put pressure on global financial markets.
“Fears of a stronger dollar and stagflation have proven to limit the market’s upward trend,” Stephen Innes of SBI Asset Management said in a note.
Both world oil benchmarks rose more than one percent last week following data showed strong demand for oil in the United States, the world’s largest oil consumer, despite inflation fears and hope that consumption may rise in China, the world’s second-largest oil consumer. globally, following lifting the closure procedures from the first of June.
Source: agencies