Oil Plunges 4% on China’s COVID-19 restrictions And Climate Warnings

Oil prices tumbled 4% on Monday, continuing their sharp losses incurred last week against the backdrop of the rise in the US dollar and fears that the global recovery in fuel demand may slow due to new restrictions to confront the pandemic in Asia, especially in China.

The sentiment was further hurt by a serious warning from a United Nations panel on climate change after fires in Greece destroyed homes and forests and parts of Europe suffered deadly floods last month.

Brent crude futures fell $2.82, or 4.2%, to $67.88 a barrel, after falling 6% last week, their biggest loss in four months.

US West Texas Intermediate crude futures fell $2.85, or 4.3%, to $65.43 a barrel, after dropping nearly 7% last week in the biggest decline in nine months.