Crude price falls on concerns about Chinese demand

Crude prices fell on Tuesday as rising COVID-19 cases in China renewed fears of lower fuel consumption by the world’s top oil importer.

As of 1051 GMT, Brent crude futures were down 83 cents, or 0.89%, at $92.31 a barrel, after losing 3% on Monday. West Texas Intermediate in the United States was down 92 cents, or 1.07%, at $84.95, after plunging 3.5% in the previous session.

Investors applauded Chinese announcements last week that it will reduce the impact of its strict zero COVID policy to stimulate economic activity and energy demand, but analysts said lockdowns and rising cases remain a key risk. down.

“The surge in COVID cases in Beijing and other cities has reminded us that a change in the trajectory of economic growth and crude demand in the world’s largest oil importer is anything but imminent.”, said Tamas Varga, of the PVM brokerage.

COVID cases in the country continued to rise on Tuesday, including in the capital Beijing, and growth in factory output slowed.

Investment bank JPMorgan cut its quarterly and full-year economic growth forecasts for China on Tuesday due to ongoing COVID restrictions in the country.

With information from Reuters