Oil prices fell today, Tuesday, after the high cases of Coveyd-19 in China raised fears that fuel consumption has decreased in the world’s largest crude oil imported country, in addition to the organization of the Organization of Petroleum Exporting Countries (OPEC) its expectations for global demand in 2022.
Brent crude futures decreased 27 cents, or 0. 3%, to $ 92. 87 a barrel by 04:16 GMT after declining 3% upon settlement on Monday.
US West Texas Intermediate crude futures fell 50 cents, or 0. 6%, to $ 85. 37 a barrel, after 3. 5% decreased in the previous session.
While investors welcomed China’s announcement last week that it would reduce the strict restrictions imposed to reduce the spread of the Corona virus to stimulate economic activity and energy demand, analysts said that closure and increased injuries to the Kofid-19 are still a major negative danger.
“The closure in the densely populated areas in China hinders the movement and demand for oil more than economic activity,” said Stephen Ennis, director of the SBI Asset Management.
The growth of factory production in China slowed down and retail sales and real estate decreased more in October, in the latest sign that the second largest economy in the world loses its momentum while facing difficulties due to the long Kovid restrictions.
OPEC has reduced its expectations for the growth of global oil demand in 2022 for the fifth time since April, due to the increasing economic challenges, including high inflation and interest rates.
This comes after the International Monetary Fund said on Sunday that global economic expectations have become more depressed than expected last month, pointing to a steady deterioration in the polls of the indicators of purchasing managers in recent months.
The ban that the European Union will be imposed on Russian oil is scheduled to start in response to Moscow’s invasion of Ukraine, on December 5. After the ban, the European Union will stop imports of Russian oil products in February..
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