Oil prices slide as hopes for China demand rebound fade

Oil prices fell more than $1 a barrel on Monday after Chinese officials on the weekend reiterated their commitment to a strict Covid containment approach, dashing hopes of an oil demand rebound at the world’s top crude importer.

Brent crude futures dropped $1.20, or 1.2 per cent, to $97.37 a barrel by 0227 GMT, after hitting as low as $96.50 earlier. US West Texas Intermediate crude was at $91.24 a barrel, down $1.37, or 1.5 per cent, dropping to a session-low of $90.40 a barrel earlier in the session.

“Oil prices dropped sharply as the Chinese officials vowed to stick to the Covid-zero policy while infected cases climbed in China, which may cause more restrictions measures, darkening the demand outlook,” CMC Markets analyst Tina Teng said.