Oil prices extend losses as Shanghai lockdowns hit demand outlook

TOKYO (Reuters) – Oil prices extended losses on Monday amid persistent worries that prolonged COVID-19 lockdowns in Shanghai and potential U.S. rate hikes would dent global economic growth and fuel demand.

Brent crude futures slid $1.90, or 1.8%, to $104.75 a barrel at 0015 GMT, while U.S. West Texas Intermediate (WTI) crude futures fell $1.89, or 1.9%, to $100.18 a barrel.

The benchmarks lost nearly 5% last week on demand concerns.

“Bearish sentiment outweighed concerns over tight global supply as China continued lockdowns in Shanghai and investors prepared for a series of U.S. rate hikes,” said Hiroyuki Kikukawa, general manager of research at Nissan Securities.