Brent Slides as Rising COVID-19 Cases in China Stokes Demand Fear

Brent Slides as Rising COVID-19 Cases in China Stokes Demand Fear

Brent Crude price dropped to $55.25 early on Monday over pressure of protracted lockdowns due to second wave of coronavirus as China reported daily surge.

On Monday, Oil prices declined over prolonged lockdowns and restrictions amid increasing COVID-19 cases worldwide, intensifying concerns over weak fuel demand.

The price of OPEC basket of thirteen crudes stood at $54.69 a barrel on Friday, compared with $55.14 the previous day, according to Oil cartel’s Secretariat calculations

International benchmark Brent crude was trading at $55.25 per barrel at early today for a 0.29% fall after closing Friday at $55.41 a barrel.

American benchmark West Texas Intermediate (WTI) traded at $52.32 per barrel at the same time for a 0.99% increase after it ended the previous session at $52.27 a barrel.

While more than 99.2 million cases have been reported worldwide, the markets are closely monitoring the resurgence in COVID-19 cases globally.

Especially in China, the World’s second-largest oil consumer.

China’s National Health Commission reported 124 new cases of confirmed infections, up from 80 a day earlier with a tally of 15 serious cases reported on Sunday.

This increase added to oil demand fears as the country tightened lockdowns and imposed restrictions to battle the spread of the virus.

Meanwhile, some European countries like the UK, France and Spain are also preparing to take additional measures.

These development is affecting demand outlook as countries begin to tightening with another round of lockdowns.

Recall that Spain reported 42,885 more coronavirus infections on Friday, the second-highest daily surge since the pandemic began.

Oil prices tumbled more than 2.5 percent early on Friday, dragged down by concerns that oil demand in the world’s top oil importer.

Market analysts believe that China, could falter amid rising COVID-19 cases and expanding lockdowns.

On Friday, WTI Crude prices had slipped below $52 a barrel, and were trading down 2.60 percent at $51.73.

The international benchmark, Brent Crude, had fallen below $55, with the price down 2.28 percent at $54.79.

Oil prices lost further ground on Friday from the 11-month high they had hit last week, when the Saudi surprise cut was still supporting gains.

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Brent Slides as Rising COVID-19 Cases in China Stokes Demand Fear