Oil Prices fell to near two-month lows on Monday as demand concerns emanating from China, the world’s second-largest economy, continue to weigh on investor sentiments.
Brent, the benchmark for two thirds of the world’s oil, was trading 0.34 per cent lower at $87.32 a barrel at 9.27am Nigerian time. West Texas Intermediate, the gauge that tracks US crude, was down 0.35 per cent at $79.80.
Persecondnews.com reports that prices have also come under pressure amid reports of reduced demand for crude from Saudi Arabia, the largest exporter, and concerns that Russian production will not drop significantly after an EU ban on seaborne crude oil exports from the country comes into effect in December.
An additional 1.1 million barrels per day of crude and 1 million bpd of diesel, naphtha and fuel oil will have to be replaced once the EU embargo on Russian crude oil and product imports comes into effect, the International Energy Agency said in a report last week.
Swissquote Bank senior analyst Ipek Ozkardeskaya said the price of “US crude slipped below the $80 psychological level last week, below the post-pandemic ascending trend base”.
“The short-term outlook is revised from neutral to slightly negative,” she said.
China is battling a rising number of Covid-19 infections in its urban centres, raising concerns that the top crude importer will reintroduce strict containment measures and lockdowns.
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