Oil price drops due to recession fears and China’s restrictions

Oil prices fell nearly $1 on Monday in choppy trading after worries about a recession and China’s restrictions to combat COVID-19 outweighed persistent concerns about a supply shortage.

Brent crude futures were down 82 cents, or 0.8 percent, at $106.20 a barrel.

US West Texas Intermediate crude futures fell $1.04, or one percent, to $103.75 a barrel.

Trading was thin due to a public holiday in parts of Southeast Asia.

And contracts for both crudes recorded a weekly decline last week, after fears that rising interest rates to curb inflation could lead to a recession and weaken demand for oil dominated the market.