Sharjah24 – Archyde.com: Oil prices fell on Tuesday as fresh COVID-19 curbs in China, the world’s biggest crude importer, and fears of a global economic slowdown weighed on the outlook for fuel demand.
Brent crude futures for September had fallen $1.81, or 1.7%, to $105.29 a barrel by 0633 GMT, while U.S. West Texas Intermediate crude for August delivery was at $102.14 a barrel, down $1.95, or 1.9%.
“Growing fears of a recession and continued sluggish demand in China are pulling oil prices lower, though the current supply-demand balances remain precarious,” analysts from consultancy Eurasia Group said in a note.
Multiple Chinese cities are adopting fresh COVID-19 curbs, from business halts to lockdowns, to rein in new infections as the highly infectious BA.5.2.1 subvariant appears in the country.
“While China may take a more targeted approach in trying to squash any outbreak, we will need to see how this plays out given the country’s COVID zero policy,” said Warren Patterson, head of commodity research at ING.
