Oil prices closed higher on Monday as concerns grew that the spread of Covid-19 in China despite draconian measures by local authorities would hit demand even harder in the near future.
In particular, the crude for June delivery lost 3.5% or $ 3.53 and closed at $ 98.54 a barrel on the New York Mercantile Exchange. This is the lowest closing since April 11th.
Brent crude for June delivery fell 4.1%, or $ 4.33, to $ 102.32 a barrel on ICE Futures.
The rapid rise in coronavirus cases in Beijing has sparked concerns about an unprecedented lockdown in the capital. At the same time, the picture in Shanghai is not improving, although the lockdown there has been going on for several weeks, with the city of 25 million people setting a new record in Covid-19 deaths over the weekend.
Lockdowns in Chinese cities as part of the government’s zero-sum policy threaten to lead to a major slowdown in the Chinese economy, analysts warn, as China is the world’s largest importer of crude oil.
Source: Capital
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