Oil prices fall more than 5% on fears about Chinese demand

Los oil prices They fell this Monday to their lowest level since the beginning of the year, weighed down by a context of uncertain demand after the announcement of new deaths from Covid-19 in China, which could stop the easing of sanitary measures.

Around 15:25 GMT, the price of oil Brent –European reference– lost 5.30% to reach 83 dollars while that of the US WTI fell 5.57% to settle at 75.62 dollars.

Earlier, oil was trading near two-month lows after losing nearly a dollar a barrel, as concerns about China’s fuel demand and a strong dollar weighed on prices, while fears about supply decreased.

Both benchmarks closed Friday at their lowest level since September 27, extending their losses for a second week, with Brent down 9% and WTI down 10%.

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Aside from the weakening demand outlook due to Covid restrictions in China, the rally in the dollar today is also a bearish factor for oil prices,” said CMC Markets analyst Tina Teng.

The number of new cases of Covid-19 in China it remained near April’s highs as the country battles outbreaks in its major cities.

The immediate-month Brent crude futures spread narrowed sharply last week, while WTI went into contango, reflecting concerns about declining supplies.

Meanwhile, expectations of further increases in prices interest rates elsewhere they have boosted the dollar, making dollar-denominated commodities more expensive for investors.