WTI Crude falls by 4%, sells below $110/Bbl

The West Texas Intermediate (WTI) crude futures fell more than 4% to below $110 per barrel on Monday, erasing a 1.4% gain in the previous session, in anticipation of a drop of fuel demand in China after authorities in Shanghai said they would shut the country’s financial hub to carry out Covid-19 testing over a nine-day period.

Shanghai’s city government said on Sunday that public transport, including ride-hailing services, will be suspended during the lockdown, adding that unapproved vehicles will not be allowed on the roads.

It also said that all companies and factories will suspend manufacturing or have people work remotely.

The moves followed a 10.5% jump in oil prices last week as markets grappled with supply disruptions caused by sanctions against Russian energy, damage to a major pipeline in the Black Sea and militant attacks on Saudi oil facilities.

Meanwhile, investors also weighed failure within the EU to ban Russian oil imports on opposition from Germany and others reliant on energy exports from the country.

The West Texas Intermediate (WTI) benchmark for US crude is the world’s most actively traded commodity.

Source: Trading Economics