Oil drops over 2% on China lockdowns due to outbreak, US unemployment data

NEW YORK (Reuters) – Oil prices fell more than 2% on Friday as concerns about Chinese cities in lockdown due to coronavirus outbreaks tempered a rally driven by strong import data from the world’s biggest crude importer and U.S. plans for a large stimulus package.

Brent was down $1.33, or 2.3%, at $55.17 by 11:59 a.m. EST (1559 GMT), after gaining 0.6% on Thursday. U.S. West Texas Intermediate crude was down $1.17, or 2.1% at $52.44 a barrel, having risen more than 1% the previous session.

Both benchmarks, which hit their highest in nearly a year earlier in the week, were are heading for their first weekly declines in three weeks.