Oil falls as Shanghai lockdown boosts fears over weaker demand

Shafaq News / Oil prices fell more than $3 on Monday as fears over weaker fuel demand in China grew after its financial hub of Shanghai launched a planned two-stage lockdown on Monday to contain a surge in COVID-19 infections.

The market kicked off another week of uncertainty, buffeted on one side by the ongoing war between Ukraine and Russia, the world's second-largest crude exporter, and the expansion of COVID-related lockdowns in China, the world's largest crude importer.

Brent crude futures slid as low as $116.00 a barrel and were trading down $3.09, or 2.6%, at $117.56 at 0340 GMT.

U.S. West Texas Intermediate (WTI) crude futures hit a low of $109.30 a barrel, and were down $3.28, or 2.9%, at $110.62.

Both benchmark contracts rose 1.4% on Friday, notching their first weekly gains in three weeks, with Brent surging more than 11.5% and WTI climbing 8.8%.

(Reuters)