Fears over China’s demand cause the oil market to fall

Oil prices fell on Monday, owing to concerns about Chinese demand, the previous release of strategic reserves, and the dimming prospect of a European embargo on Russian supply in the aftermath of the Ukraine conflict.

In noon trading, the US benchmark oil West Texas Intermediate fell to $92.93 per barrel, while European Brent rose to $97.57 per barrel.

“As the number of Covid cases continues to rise, it is above all the bad news from China that is weighing on prices,” said Commerzbank analyst Barbara Lambrecht.

“The oil demand slowdowns in the world’s second-largest consumer country appear certain to continue for considerably longer.”

After rising public criticism over China’s restrictive Covid-19 laws, Shanghai lifted restrictions on several neighbourhoods on Monday.