Oil prices fell more than $6 on Monday as fears mounted over weaker demand for fuel in China following lockdown efforts by Shanghai’s financial hub to stem a spike in Covid-19 infections. .
Brent crude futures fell to $113.72 a barrel and were trading down $5.97, or 4.9%, at $114.68 at 1212 GMT.
West Texas Intermediate (WTI) crude futures hit a low of $106.81 a barrel and fell $5.93, or 5.2%, to $107.97.
Both benchmark contracts were up 1.4% on Friday, posting their first weekly gains in three weeks, with Brent up 11.8% and WTI up 8.8%.
Shanghai entered a two-stage lockdown of 26 million people on Monday in an attempt to contain the spread of the coronavirus.
“This is also generating growing concerns that China’s strict zero Covid policy will lead to repeated lockdowns in key business centers,” Carsten Fritsch, an analyst at Commerzbank, said in a note.
Oil demand in China, the world’s biggest oil importer, is expected to be 800,000 barrels per day (bpd) softer in April compared to “normal” levels, said Bjarne Schieldrop, chief commodities analyst at SEB bank.
Source: CNN Brasil
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