Oil falls for the fourth day, affected by demand concerns in China

Oil prices extended losses on Thursday for the fourth consecutive session as the renewal of anti-Covid-19 restrictions in China raised concerns about fuel demand in the world’s largest importer of crude.

China is fighting an increase in the number of infections in several economically important cities, including the capital, Beijing. Authorities asked Guangzhou’s manufacturing hub residents to get tested for COVID-19 on Wednesday.

By 1100 GMT, Brent crude futures fell 68 cents, or 0.7 percent, to $91.97 a barrel. West Texas Intermediate crude futures fell $1.07, or 1.3 percent, to $84.76 a barrel.

The market came under pressure on Wednesday as a result of a significant increase in US crude inventories. Inventories rose by 3.9 million barrels, to their highest since July 2021.

US consumer price index data will be released later on Thursday, and is expected to show a decline in core inflation, monthly and annually.

This may prompt the Federal Reserve to reduce the size of the planned increase in interest rates, which will be considered a positive indicator of economic growth and demand for oil.