Oil prices slide on Beijing COVID warning, inflation concerns

Author of the article: SINGAPORE — Oil prices slipped more than $2 on Monday as a flare-up in COVID-19 cases in Beijing quelled hopes for a rapid pick-up in China’s fuel demand, while worries about global inflation and economic growth further depressed the market. Brent crude futures fell $2.06, or 1.7%, to $119.95 a barrel…
Oil prices slide on Beijing COVID warning, inflation concerns

Author of the article:

SINGAPORE — Oil prices slipped more than $2 on Monday as a flare-up in COVID-19 cases in Beijing quelled hopes for a rapid pick-up in China’s fuel demand, while worries about global inflation and economic growth further depressed the market.

Brent crude futures fell $2.06, or 1.7%, to $119.95 a barrel by 0033 GMT while U.S. West Texas Intermediate crude was at $118.54 a barrel, down $2.13, or 1.8%.

Prices tumbled after Chinese officials warned on Sunday of a “ferocious” COVID spread in the capital and announced plans to conduct mass testing in Beijing until Wednesday.

Concerns about further interest rate hikes following a sharp rise in U.S. inflation data on Friday are also weighing on global financial markets.

“The stronger greenback and stagflation fears proved to be the bullish market’s undoing,” Stephen Innes of SPI Asset Management said in a note.

“China remains the significant near-term downside risk, but most view the gradual normalization of Chinese demand as a powerful positive for oil despite the potential for lockdown noise in the coming weeks as current demand is far from reflecting normal conditions.”

Both global oil benchmarks rose more than 1% last week after data showed robust oil demand in the world’s top consumer, the United States, despite inflation concerns and on hopes that consumption in China – global no. 2 consumer – could rebound after lockdown measures were lifted from June 1.

Oil producers and refineries are running full-throttle to meet peak summer demand, while traders are closely watching for a possible impact from labor disputes in Libya, Norway and South Korea on oil exports and consumption.

To boost supplies in the West, Saudi Arabia, the world’s top exporter, planned to divert some crude to Europe from China in July, traders said. (Reporting by Florence Tan; Editing by Kenneth Maxwell)

Financial Post Top Stories

Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.

By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300

Read More

Total
0
Shares
Leave a Reply

Your email address will not be published.

Related Posts
U.S. Vice President Harris to attend Abe’s state funeral – Nikkei
Read More

U.S. Vice President Harris to attend Abe’s state funeral – Nikkei

This advertisement has not loaded yet, but your article continues below. Author of the article: Article content U.S. Vice President Kamala Harris will attend former Japanese Prime Minister Shinzo Abe’s state funeral on Sept. 27, Nikkei Asia reported https://s.nikkei.com/3QIM37n on Sunday. Harris is also expected to meet Japanese Prime Minister Fumio Kishida on her first…
Australian Prime Minister Sets Holiday for Queen; Says Not the Time to Discuss Republic Push
Read More

Australian Prime Minister Sets Holiday for Queen; Says Not the Time to Discuss Republic Push

Australia will get a one-time national public holiday to mourn Queen Elizabeth II, as her death revives a decades-long debate over whether the country should become a republic. Author of the article: Bloomberg News Emma O'Brien SYDNEY, AUSTRALIA - SEPTEMBER 10: An image of the late Queen Elizabeth II is projected onto the sails of…
Canada Goose shares fall after parka-maker cuts outlook over Omicron disruption
Read More

Canada Goose shares fall after parka-maker cuts outlook over Omicron disruption

Revenue lower than expected in Asia and Europe amid new COVID-19 outbreaks Canada Goose Holdings Inc. reported third-quarter earnings Thursday. Photo by REUTERS/Andrew Kelly Canada Goose Holdings Inc. on Thursday cut its full-year guidance following lower-than-expected retail growth in Asia and Europe after being hit by the unanticipated severity of the Omicron wave. The luxury…