WTI retreats below $90 on concerns about China, US elections

Oil price retreated on fresh fears about Chinese demand. The US dollar’s reversal has failed to support crude prices. WTI falls beyond 2% on the day to hit session lows near $90.00. Oil prices have extended losses for the second consecutive trading day on Tuesday, as hopes about a relaxation of the COVID-19 restrictions in China weakened.

Hopes that China would ease coronavirus restrictions disappeared on Tuesday. Chinese officials reiterated their commitment to strict COVID-19 controls, which has reactivated fears of negative consequences in oil demand, as the infections increase as the winter flu season approaches.


The uncertainty about the outcome of the US midterm elections has increased negative pressure on oil prices. Investors have adopted a wait-and-see stance, while the first polls point out to a Republican victory.

The dollar reversal witnessed during the North American trading session has failed to offer any relevant aid to oil futures. Crude prices have dropped more than 2% on the day, extending their reversal from Monday’s highs at 93.65 to session lows right above $90.00.