Oil prices have dropped because of China, why?

Jakarta –

Oil price decreased on Thursday. This is because demand in various countries has started to stagnate due to plans to restrict entry to tourists from China.

Quoted by Reuters, China has opened the lockdown in various regions of the country, but there has been an increase in infections and tightened travel conditions in countries frequented by Chinese tourists.

Reuters said oil price Brent crude oil for February delivery fell to 82.26 US dollars or down 1.2% from the previous trading day. Then US West Texas Intermediate oil was recorded at $78.4 a barrel, down 0.7%.

The UK is currently reviewing entry restrictions for people arriving from China. Meanwhile, the United States (US), Japan, India and Taiwan have imposed mandatory testing for people arriving from China.

Kpler Oil Analyst Matt Smith explained that the price of crude oil was getting lower at the end of this year.

He said that the supply of US crude increased last week due to rising imports and falling exports.

Swiss UBS analyst Giovanni Staunovo said many investors are currently worried about rising interest rates. Not only that, the market is also concerned about the movement of the US dollar which could cause oil prices to fluctuate and affect other countries’ currencies.

Then OANDA senior market analyst Craig Erlam explained that OPEC+ could make an announcement on oil production at any time. “Suddenly everything can change. Not to mention the war between Russia and Ukraine,” he explained.

Watch a video “Jokowi goes back and forth on fuel prices, what is he worried about?“
[Gambas:Video 20detik]
(kil/zlf)