Oil prices fell more than $1 a barrel on Tuesday (14) in the wake of COVID-19 cases. increase in china This has raised concerns about the declining fuel consumption from the world’s largest crude oil importer.
Brent crude futures fell $1.07, or 1.15 percent, to $92.07 a barrel by 1005 GMT, after falling 3 percent on Monday. U.S. West Texas Intermediate crude fell $1.25, or 1.46 percent, to $84.62, after falling 3.5 percent in the previous session.Oil prices fell more than $1 a barrel.
Investors hailed China’s announcement last week that it would mitigate the impact of its COVID-19 control policy. strict to stimulate economic activity and energy demand But analysts say lockdowns and increased cases remain a major negative risk.
“The rise of COVID cases in Beijing and in other cities reminds us that a shift in the trajectory of economic growth and oil demand in the world’s largest oil importer is almost impossible,” said Tamas Wah. Garca, oil brokerage PVM said.
Number of COVID-19 patients of the country increased further on Tuesday. including in Beijing, the capital, and the country’s factory output growth slowed.
Investment bank JPMorgan cut its quarterly and full-year forecasts for China’s economic growth on Tuesday. due to the country’s COVID-19 restrictions.
meanwhile The Organization of the Petroleum Exporting Countries (OPEC) has cut its forecast for 2022 global oil demand growth for the fifth time since April. citing rising economic challenges including high inflation and higher interest rates.
However, concerns about tight supply this winter continue to drive oil prices. EU sanctions on Russian oil are scheduled to begin on December 5. The ban will be followed by a halt on imports of oil products in February.
The European Union (EU) International Energy Agency released a statement on Tuesday saying: The EU has banned the use of Russian crude at sea. This means that the 1.1 million barrels per day benchmark will have to be changed.
in more positive news U.S. crude inventories are expected to drop about 300,000 barrels in the week to Nov. 11, a Reuters poll showed on Monday.
The poll was conducted ahead of reports from the American Petroleum Institute due at 4:30 p.m. ET (2130 GMT) on Tuesday and the Energy Information Administration (EIA) on Wednesday.
