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Oil prices fell more than $1 a barrel on Tuesday, after a spike in COVID-19 cases in China revived fears of a drop in fuel consumption in the world’s top crude oil importer.
Brent crude futures fell $1.07, or 1.15 percent, to $92.07 a barrel by 1005 GMT, after falling 3 percent at the settlement on Monday.
US West Texas Intermediate crude fell $1.25, or 1.46 percent, to $84.62 a barrel, after declining 3.5 percent in the previous session.
While investors welcomed China’s announcement last week that it would ease strict restrictions imposed to curb the spread of the coronavirus to stimulate economic activity and energy demand, analysts said shutdowns and an increase in COVID-19 infections remain a major downside risk.
Corona injuries in China increased further on Tuesday, including in the capital, Beijing, and the growth of factory production in the country slowed.
JB Bank downgraded. Morgan gave its quarterly and full-year forecast for economic growth in China on Tuesday due to the country’s ongoing anti-coronavirus restrictions.
On the other hand, the Organization of the Petroleum Exporting Countries (OPEC) lowered its forecast for the growth of global demand for oil in 2022 for the fifth time since April, citing growing economic challenges, including rising inflation and interest rates.
The European Union’s embargo on Russian oil, in response to Moscow’s invasion of Ukraine, is scheduled to start on December 5. After the ban, the European Union will stop buying imports of Russian petroleum products in February.
On the other hand, a Reuters poll on Monday showed that US crude oil inventories are expected to have fallen by about 300,000 barrels in the week ending November 11.
The poll was conducted ahead of reports from the American Petroleum Institute at 0430 p.m. EDT (2130 GMT) on Tuesday and from the Energy Information Administration on Wednesday.
