Oil prices fell more than $2 after a surge in COVID-19 infections in the Chinese capital, Beijing, shattered hopes of a rapid increase in China’s fuel demand, and worries about global inflation and economic growth further depressed the market.
Brent oil futures fell $2.06, or 1.7 percent, to $119.95 a barrel by 0033 GMT, while U.S. West Texas Intermediate oil fell $118.54 a barrel , down $2.13, or 1.8 percent. Prices fell after Chinese officials warned Sunday of a “vicious” COVID-19 outbreak in the capital and announced plans to conduct mass testing in Beijing before Wednesday.
Concerns about raising interest rates following a sharp rise in U.S. inflation data also put pressure on global financial markets, with both global benchmarks up more than one percent last week after data showed strength in demand for oil in the U.S., the world’s biggest consumer. oil in the world, despite inflationary fears and the hope that consumption could rise in China, the world’s second largest oil consumer, after the lifting of quarantine measures from June 1.
Source: El Iktisad
