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Oil down over demand woes as China goes under fresh lockdowns

EconomyOil down over demand woes as China goes under fresh lockdowns

World (The Times Groupe)- Oil prices declined on Friday as a result of China’s new zero-COVID policy, with both benchmarks still at 3-month highs.

As of 0705GMT, International benchmark Brent crude was trading at $122.45 per barrel for a decrease of 0.50% from the previous session’s close of $123.07.

The American benchmark West Texas Intermediate (WTI) was at $120.91 per barrel at the same time, down 0.49% from the previous session’s close of $121.51.

In order to push prices down, Chinese authorities on Thursday imposed a two-day lockdown in Shanghai’s Minhang district and announced a round of mass testing for millions of residents.

In his daily energy market review for [Persian] Gulf Intelligence Consultancy, Andy Laven warned of a disruption in supply and demand due to China’s lockdown decision. China

“Since May 2020, the oil price trend has been going up. The world has been living in a very low interest rate environment for a long, long time, and it needs a healthy dose of high rates to get a bit of reality back into businesses. The question is, how quickly do we get there and that’s the balance between the issues of recession versus politics. But for now, pent up demand will keep people spending even if things are getting more costly,” he added.

Although COVID19 lockdowns and a sluggish economy weighed on fuel consumption last month, China’s crude oil imports surged roughly 12% from a low base a year ago, easing demand concerns.

However, prices were supported by a spike in summer gasoline consumption in the US as the driving season began in the country on June 1. china’s china

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