Oil prices fell $1 in early trade in Asia on Monday, paring Friday’s gains, as attention turned once once more to a spike in COVID-19 cases in China and the prospect that the shutdown once more might slash fuel demand in the top oil importer. In the world.
US West Texas Intermediate crude futures for August delivery fell $1.54, or 1.6 percent, to $96.05 a barrel at 00:55 GMT, following rising 1.9% on Friday.
Brent crude futures for September delivery fell by $1.47, or 1.5 percent, to $99.69 a barrel, down 2.1 percent from Friday.
China, the world’s second largest oil consumer, on Sunday reported 691 new COVID-19 cases on Saturday, up from 547 the day before, while locally transmitted cases recorded their highest levels since May 23.
“Oil is opening the week more smoothly as the market absorbs the impact of rising new Covid cases in China on demand and while the market is cautiously waiting for an important event if gas pipeline flow from Russia to Europe resumes,” said Stephen Innes, managing partner at SBI Asset Management. Nord Stream 1 later this week. The Nord Stream 1 pipeline, the largest Russian natural gas transportation system to Germany, began annual maintenance work on July 11 and is scheduled to last for 10 days. Governments, markets and companies fear that the lockdown will be extended due to the war in Ukraine.
A halt to this gas supply would damage Germany, the world’s fourth-largest economy, and increase the possibility of a recession.
