Oil prices fall on renewed fears about Chinese demand

Los oil prices fell this Tuesday, since the increase in Covid-19 cases in China renewed fears of lower fuel consumption by the world’s leading oil importer.

At 10:51 GMT, crude oil futures Brent they were down 83 cents, or 0.89%, at $92.31 a barrel, after losing 3% on Monday.

The West Texas Intermediate in the United States it was down 92 cents, or 1.07%, at $84.95, after plunging 3.5% in the previous session.

Investors applauded China’s announcements last week that it will reduce the impact of its strict zero Covid-19 policy to stimulate economic activity and energy demand, but analysts said lockdowns and rising cases remain key downside risks.

“The rise in Covid-19 cases in Beijing and other cities has reminded us that a change in the trajectory of economic growth and crude demand in the world’s largest oil importer is anything but imminent,” said Tamas Varga, from the PVM brokerage.

Covid-19 cases in the country continued to rise on Tuesday, including in the capital Beijing, and growth in factory output slowed.

investment bank JPMorgan on Tuesday cut its forecasts for quarterly and full-year economic growth in China due to the current Covid restrictions in the country.

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