Home » Business » Oil prices drop after China confirmed its commitment to zero Covid policy.

Oil prices drop after China confirmed its commitment to zero Covid policy.

Brent $ 1.58, or 1.6 percent, to $ 96.99 a barrel by 2336 GMT, having recorded its lowest level at $ 96.50 earlier.

The price of West Texas Intermediate Crude Oil $ 90.84 a barrel, down $ 1.77, or 1.9 percent, to record the lowest level during the session at $ 90.40 a barrel at the start of the session.

CMC Markets analyst Tina Ting said: "Prices have fallen oil Abruptly after Chinese officials pledged to stick to zero-Covid policy as coronavirus cases soared in the country Chinawhich could lead to more restrictive measures, weakening expectations of growth in demand".

He added that the dollar’s rise is weighing on oil prices.

Four politicians noted the Fed powered (US Central Bank) Friday they are still considering the idea of ​​raising the rate Benefit of a lower rate at their next policy meeting despite strong employment data.

Brent and West Texas Intermediate rose 2.9% and 5.4% respectively last week as rumors of a possible end to severe blockades in China sent Chinese equity markets and commodity prices up despite no changes have been announced.

data may appear Business From China, the world’s second largest economy, exports slowed further on Monday as global demand continued to decline.

ANZ Research analysts say this in a note "The market is still facing signs of weakness in oil demand due to already high prices and a weak economic environment in developed markets"they added that the question in Europe The United States is back to 2019 levels.

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Crude oil futures fell Brent $ 1.58, or 1.6 percent, to $ 96.99 a barrel by 2336 GMT, having recorded its lowest level at $ 96.50 earlier.

The price of West Texas Intermediate Crude Oil $ 90.84 a barrel, down $ 1.77, or 1.9 percent, to record the lowest level during the session at $ 90.40 a barrel at the start of the session.

“The price has dropped,” said Tina Ting, an analyst at CMC Markets oil Abruptly after Chinese officials pledged to stick to zero-Covid policy as coronavirus cases soared in the country ChinaThis could cause more restrictive measures, weakening expectations of demand growth ”.

He added that the dollar’s rise is weighing on oil prices.

Four politicians noted the Fed powered (US Central Bank) Friday they are still considering the idea of ​​raising the rate Benefit of a lower rate at their next policy meeting despite strong employment data.

Brent and West Texas Intermediate rose 2.9% and 5.4% respectively last week as rumors of a possible end to severe blockades in China sent Chinese equity markets and commodity prices up despite no changes have been announced.

data may appear Business From China, the world’s second largest economy, exports slowed further on Monday as global demand continued to decline.

“The market is still facing signs of weakness in oil demand due to already high prices and a weak economic environment in developed markets,” ANZ Research analysts said in a statement, adding that demand in Europe The United States is back to 2019 levels.

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