Oil prices fall after China confirms commitment to a strict anti-Corona policy

Oil prices fell more than 2% in early Asian trading on Monday after Chinese officials affirmed over the weekend their commitment to a tough approach to containing the Corona virus, dashing hopes of a recovery in oil demand in the world’s largest importer of crude.

Brent crude futures fell $1.58, or 1.6 percent, to $96.99 a barrel by 2336 GMT, after hitting a low of $96.50 earlier. The price of US West Texas Intermediate crude reached $ 90.84 a barrel, down $1.77, or 1.9 percent, to record its lowest level during the session at $ 90.40 a barrel earlier in the session.

She added that the dollar’s rise is weighing on oil prices.

Four policymakers at the Federal Reserve indicated on Friday that they are still considering a smaller rate hike at their next policy meeting despite the strong jobs data.

Brent and West Texas Intermediate rose 2.9 percent and 5.4 percent last week, respectively, as rumors of a possible end to strict lockdowns in China sent Chinese stock markets and commodity prices higher despite no changes announced.

Trade data from China, the world’s second-largest economy, later on Monday may show a further slowdown in exports as global demand continues to decline.