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Lockdowns due to the resurgence of the coronavirus in China crush oil

Oil prices lost ground on Monday on fears that an eventual mass lockdown in China to deal with the resurgence of the coronavirus in Shanghai and Beijing hit energy demand.

The idea that closures could prevent displacement and limit industrial activity caused a barrel of Brent from the North Sea for June delivery in London to lose 4.06%, which closed at 102.32 dollars.

Look: “I paid 60 dollars for two rotten pork chops”: the dramatic stories of the confinement in Shanghai, where food is missing

During the day, the barrel of Brent even went below the level of 100 dollars per barrel, at 99.66 dollars (-6.55%) for the first time in two weeks.

Meanwhile, the barrel of West Texas Intermediate (WTI) for delivery in the same month fell 3.45% to 98.54 dollars.

“We have the covid that is spreading in Beijing and with that the concern that a general confinement will be imposed” in the capital Chinasummed up Bob Yawger of Mizuho USA.

The specialist pointed out that the demand China Crude oil has already fallen 1.2 million barrels per day due to sanitary restrictions in Shanghai.

“This number could increase. There are tons of reasons to think so, because the situation in Shanghai doesn’t seem to be improving quickly.”Yawger added.

China It is the largest importer of crude oil in the world.

Since the beginning of April, almost all of the 25 million inhabitants of Shanghai they are confined.

Beijing has been living under the same threat since Monday, after a rare epidemic outbreak in the capital, with massive tests in the middle of the street.

The rise in the dollar also pushed crude oil down, making a barrel more expensive for investors in other currencies.

Source: Elcomercio

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