Oil fell due to tightening of COVID-19 restriction in China
31.10.2022 - 16:20
Oil prices fell more than $1 today after updates on China’s factory activity and fears that new COVID-19 restrictions will reduce demand.
Brent crude futures fell $1.1, or 1.2%, to $94.67/barrel, Reuters reports.
West Texas Intermediate (WTI) crude was at $86.83 a barrel, down $1.07, or 1.2%, after falling 1.3% on Friday.
Factory activity in China, the world’s largest raw oil importer, unexpectedly fell in October. The situation has been aggravated by reduced global demand and severe restrictions related to COVID-19, which have hit production.
China’s strict COVID-19 restrictions have dampened economic and business activity, reducing demand for oil. China’s crude oil imports fell 4.3% in the first three quarters of the year from a year earlier, the first annual decline since 2014.
