May 26, 2022

Raven Tribune

Complete News World

China's economy headed downward as lockdowns tighten

US oil drops below $100 due to China’s fears of Covid

US oil fell 6.7% to a two-week low of $95.28 a barrel on Monday. Crude oil ended the day 3.5% lower at $98.54 a barrel, its first close below $100 since April 11. Global benchmark Brent crude fell about 4%.

“The prevailing sentiment today is bearish due to the China Covid shutdown,” Andy Lebow, president of Lipow Oil Consulting, wrote in an email Monday.

Chaoyang District, one of the largest districts in the Chinese capital, Beijing, announced on Sunday that it will launch mass testing for people who live and work in the district.

trying to fit a file The outbreak described as “urgent and grim” Beijing authorities closed dozens of apartment complexes in eight regions, preventing residents from leaving their homes or the complex. Residents rushed to stock up on essential goods amid fears of a lockdown.

“It appears that rising shutdowns and shutdowns will increasingly reduce demand in one of the world’s leading oil consumers,” said Matt Smith, senior oil analyst, Americas, at Kpler Analytics.

Although the oil market has been hit, China’s concerns may create a positive one for consumers: It may ease pressure on prices at the pump, which I snuck up last week.
The national average price of regular gasoline was unchanged on Monday At $4.12 a gallonAccording to AAA. That’s up from a recent low of $4.07 a gallon earlier this month.

While the focus is now on oil demand, traders are on high alert for further disruptions to Russian oil supplies that could push prices higher again.

For example, this now Emmanuel Macron won re-election As president of France, Lebeau said officials in Paris are likely to ban purchases of Russian oil “soon.”