Oil gives up gains on rising COVID-19 cases in China and dollar’s strength

Oil prices pared their previous gains and fell Monday, November 14, affected by the rise in the dollar and the increase in Corona virus infections in major Chinese cities, which dashed hopes of reopening the economy of the world’s largest importer of crude.

Brent and US West Texas Intermediate crude futures rose about 1% earlier in the session, but later reversed course and fell.

By 07:25 GMT, Brent crude futures fell 32 cents, or 0.3%, to $95.67 a barrel, after settling up 1.1% on Friday. And US crude futures fell 39 cents, or 0.4%, to $ 88.57 a barrel, after closing on Friday, up 2.9%.

Commodity prices rose on Friday after China’s National Health Commission revised measures to prevent and control the coronavirus. But COVID-19 infections surged in China over the weekend.

China’s demand for oil from Saudi Arabia, the world’s largest exporter, remains weak after many refineries requested less crude in December.