© Reuters. Two oil pumps at an oilfield in Midland, Texas. Photo from the Reuters archive.
SINGAPORE (Reuters) – It fell more than 2% early in Asian trade on Monday after Chinese officials said over the weekend their commitment to a tough approach to containing the coronavirus, defeating hopes of a rebound in demand for it. oil in the world’s largest crude oil importer.
Crude oil futures fell $ 1.58, or 1.6 percent, to $ 96.99 a barrel by 2336 GMT, after hitting a low of $ 96.50 earlier. The price of US West Texas Intermediate Crude Oil reached $ 90.84 per barrel, down $ 1.77, or 1.9 percent, to record its lowest level during the session at $ 90.40 per barrel per barrel. session start.
“Oil prices dropped sharply after Chinese officials pledged to adhere to the zero-Covid policy with rising crown cases in China, which could cause more restrictive measures, which weakens expectations,” he said. said Tina Ting, analyst at CMC Markets. growth in demand.
He added that the increase is weighing on oil prices.
Four Federal Reserve policymakers on Friday indicated they are still considering a smaller rate hike at their next policy meeting, despite strong employment data.
Brent and West Texas Intermediate rose 2.9% and 5.4% respectively last week as rumors of a possible end to severe blockades in China sent Chinese equity markets and commodity prices up despite no changes have been announced.
Trade data from China, the world’s second largest economy, on Monday could show a further slowdown in exports as global demand continues to decline.
“The market is still facing signs of weakness in oil demand due to already high prices and a weak economic environment in developed markets,” ANZ Research analysts said in a statement, adding that demand in Europe and the United States United has dropped to 2019 levels.
(Prepared by Hassan Ammar for the Arabic newsletter)
