Oil slides as rising COVID-19 cases in China trigger lockdowns

22.01.2021 - Davydova Maria
Oil slides as rising COVID-19 cases in China trigger lockdowns

Oil prices fell on Friday, dropping further from 11-month highs hit last week, weighed down by concerns that renewed COVID-19 lockdowns in China will affect fuel demand in the country.

U.S. West Texas Intermediate crude futures eased 1%, or 53 cents, at $52.60 per barrel following an 18-cent fall on Thursday. Brent crude futures dropped 0.8%, or 45 cents, at $55.65 per barrel.

Improving Chinese fuel demand supported market gains late last year, but that support is fading as rising coronavirus cases forced new lockdowns.

Shanghai reported its first locally transmitted infections in two months on Thursday. Beijing is discouraging people from travelling during the pandemic as the Lunar New Year holiday nears.

Investors are waiting for official fuel inventory data from the U.S. Energy Information on Friday. U.S. crude stocks posted a sudden 2.6-million barrel rise on Wednesday last week, contrary to analysts’ expectations for a 1.2-million-barrel drawdown. 

Risk disclaimer "PROMETHEUS LTD – Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Republic of the Marshall Islands MH96960 is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0155 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of PROMETHEUS LTD and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from umarkets.ai or PROMETHEUS LTD." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue
×

Help with deposit?