Oil falls for fourth day on concerns about Chinese demand

Oil extended its losses this Thursday for the fourth consecutive session in global markets, affected by the resumption of restrictions by the COVID in China, which increased concerns about the demand for fuel in the world’s largest importer of crude.

By 1014 GMT, Brent crude was down 20 cents, or 0.22%, at $92.46 a barrel, and West Texas Intermediate in the United States was down 33 cents, or 0.38%, at $85.49. Dollars.

China is battling a spike in infections in several economically vital cities, including the capital Beijing. In the manufacturing hub of Guangzhou, millions of residents were ordered to undergo COVID-19 tests on Wednesday.

“Chinese demand problems related to COVID, the reinvigorated dollar and the weak oil balance in the fourth quarter could put pressure on prices,” said Tamas Varga of brokerage PVM.

The drop could be limited by the European Union’s crude ban and the looming G7 price cap, it added.

Crude soared earlier in the year as Russia’s invasion of Ukraine raised supply questions, and Brent neared an all-time high of $147. Since then, prices have fallen on recession concerns and Brent has lost more than 6% so far this week.

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