Oil prices fell to more than $ 2 a barrel during trading on Monday, following an increase in the Govt-19 epidemic in China’s capital Beijing, shattering hopes that China’s demand for fuel would rise sharply, while concerns about global inflation and economic growth further weighed on the market.
Beijing’s most populous district, Sooyang, has announced the launch of three rounds of mass elections to curb the “evil” spread of Govt-19.
Fears of another interest rate hike, driven by US inflation data released on Friday, have put further pressure on financial markets.
Brent crude fell $ 2.34 or 1.9 percent to $ 119.67 a barrel at 14:20 GMT, while US West Texas Intermediate crude was down $ 118.31, $ 2.36 or 2.00 percent a barrel.
Oil prices soared after Russia’s invasion of Ukraine in 2022 increased supply concerns, and oil demand rose again after restrictions on the control of the corona virus were lifted. The price of Brent crude oil reached $ 139 a barrel, the highest level since March 2008. Both criteria rose more than one percent last week.
Lack of spare production capacity of many manufacturers, sanctions imposed on Russia and unrest in Libya have almost halved production, leaving pressure on oil supplies as OPEC and other manufacturers fail to deliver on their promises to increase production.