Oil prices fall as China demand concerns mount amid COVID curbs

Shafaq News / Oil prices fell in volatile trade on Tuesday as investor concerns about lower demand in China, the world's biggest crude importer, and further increases in U.S. and European interest rates offset worries about tight fuel supplies ahead of winter.

Brent crude slid 34 cents, or 0.4%, to $93.66 a barrel by 0445 GMT, while WTI crude declined by 20 cents, or 0.2%, to $87.58 a barrel. Both contracts fell by more than $1 earlier in the session, snapping a three-day rally.

COVID-19 curbs in China, the world's second-largest oil consumer, renewed concerns about lower global fuel demand.

The number of journeys taken during the country's three-day mid-Autumn festival dropped by more than a third compared with last year, a state media report said on Monday, as the country's zero-COVID policy discouraged people from travelling.

The U.S. consumer price index (CPI) data is set for release at 1230 GMT on Tuesday and while expectations are that the core inflation rate may show a peak, the European Central Bank and the Federal Reserve are prepared to increase interest rates further to tackle inflation.

That could lift the value of the U.S. dollar against other glboal currencies and make dollar-denominated oil more expensive for investors.

(Reuters)