Oil drops as China Covid cases spike, dollar gains ahead of midterms

Oil fell as investors weighed China’s renewed commitment to strict anti-Covid policies, and the dollar rose before US midterm elections.

West Texas Intermediate futures dropped toward $91 a barrel, after easing almost 1% in the week’s opening session as China reaffirmed its commitment to Covid Zero, including demand-sapping movement curbs and lockdowns. On Monday, more than 7,000 local cases were reported in the world’s largest crude importer, the highest daily number in more than six months.

A Bloomberg gauge of the US dollar halted a two-day loss as investors awaited midterm elections, with voters heading to the polls to decide control of both chambers of Congress, the governorship in 36 states, and other local races.