Crude oil fell about 4% on Monday to the lowest level in two weeks on growing concerns over the outlook for global energy demand on the back of prolonged Covid-19 lockdowns in Shanghai and possible increases in prices. US interest rates.
“The prospect of slower economic growth this year amid rising US interest rates … has already led to a downward revision of oil demand forecasts,” analysts at consultancy Eurasia Group said.
They also stated that “the longer the war in Ukraine and the lockdowns in China persist, the greater the risk that demand growth will be even weaker.”
Covid-19 lockdowns in Shanghai dragged on to a fourth weekwhile requests for mass testing in Beijing’s largest district have sparked fears that the Chinese capital could be destined for a similar path.
THE China is the largest oil importer in the world. Brent futures were down $4.33, or 4.1%, to close at $102.32 a barrel, while U.S. crude (WTI) was down $3.53, or 3.5%, on to close at $98.54.
Both benchmarks closed at their lowest since April 11, after losing nearly 5% last week. Since reaching their highest since 2008 in early March, prices have fallen by about 25%.