Oil prices drop as China’s Covid-19 measures cue lower demand

Oil prices decreased on Monday after new mass testing and partial lockdown measures in parts of China signaled lower fuel demand.

International benchmark Brent crude was trading at USD120 per barrel at 0705GMT for a 1.65 percent decrease after closing the previous session at USD122.01 a barrel.

American benchmark West Texas Intermediate (WTI) was at USD118.66 per barrel at the same time for a 1.67 percent loss after the previous session closed at USD120.67 a barrel.

Infection rate in China is low but the country is carrying out a zero-Covid-19 policy which some experts believe is disruptive to the economy.

In Shanghai, 11 confirmed Covid-19 cases and 26 local asymptomatic cases were reported on Sunday which led to mass testing while Beijing registered 46 new local cases on Saturday.

The country has taken various measures to curb the spread of Covid-19 since the new cases ranging from closing of nightlife spots, stores and embassies to stopping sports activities for teens.

Source: Philippines News Agency

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