Oil futures closed lower on Thursday (3), pressured by the strengthening of the dollar and with renewed concerns about Chinese demand, amid the advance of covid-19 and the country’s economic slowdown.
December WTI crude closed down 2.03% ($1.83) at $88.17 a barrel on the New York Mercantile Exchange (Nymex), while Brent for January 2023 was down 1.55 % ($1.49), at $94.67 a barrel, on the Intercontinental Exchange (ICE).
China’s top health authorities have reinforced their commitment to strict coronavirus control measures. The information invalidated speculation that the country could abandon the strategy known as “zero covid”.
In this scenario, the Asian country reported yesterday that its purchasing managers index (PMI) fell to the lowest level since May. “The data reflects China’s strict coronavirus containment measures,” says Caixin senior economist Wang Zhe. “There is still tremendous downward pressure on the economy and the basis for economic recovery is still not solid,” he adds.
For economist Edward Moya of Oanda, oil prices “are struggling as China maintains its zero covid policy and central bank tightening is crushing economic activity. “It seems that these bearish drivers are not going to decrease anytime soon,” he predicts, in a report sent to clients.
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
