Oil prices fall further as China extends Covid curbs to stop transmission

Oil prices fell on Thursday, extending sharp losses from the previous session, as China’s extension of lockdown measures to curb the COVID-19 spread exacerbated concerns that a slowdown in economic activity globally would hit fuel demand.

Brent crude futures lost 40 cents, or 0.4%, to $87.60 per barrel by 1002 GMT, near a late-January low. U.S. crude futures were down 41 cents, or 0.5%, at $81.53 a barrel, near a mid-January low.

Saxo Bank analyst Ole Hansen said the decline was “driven by continued demand worries related to the risk of growth-killing rate hikes from central banks battling runaway inflation and China’s continued economic struggle caused by its COVID-zero policy”.