Oil prices fell on Monday amid growing fears of falling energy demand in China, where the incidence of coronavirus infection continues to rise.
Shanghai reported a record number of new COVID-19 cases in the city over the weekend, while Beijing authorities said the coronavirus continues to spread rapidly.
Demand for gasoline, diesel and aviation fuel in China in April is likely to fall by 20% compared to the same month last year, that is, by about 1.2 million barrels per day, Bloomberg reported, citing sources. Such a drop will be the sharpest since the start of the COVID-19 epidemic in Wuhan, China more than two years ago.
“The possibility of a drop in demand for oil is again in the focus of the market,” said Vandana Hari, founder of Vanda Insights in Singapore. “We see downside risks to the market.”
The cost of June futures for Brent oil on the London ICE Futures exchange by 8:15 Moscow time on Monday is $103.41 per barrel, which is $3.24 (3.04%) higher than the closing price of the previous session. As a result of trading on Friday, these contracts fell by $1.68 (1.6%) to $106.65 per barrel.
The price of futures for WTI oil for June in the electronic trading of the New York Mercantile Exchange (NYMEX) is $98.86 per barrel by this time, which is $3.21 (3.14%) lower than the final value of the previous session. On Friday, the cost of these contracts fell to $1.72 (1.7%), to $102.07 per barrel.
As a result of the past week, Brent fell by 4.5%, WTI – by 4.1%.