Oil prices are on the decline amid reports of widespread COVID-19 infections in China, a
situation that could lead to renewed lockdowns and slow demand in the world’s biggest energy
market.
The price of West Texas Intermediate (WTI) crude oil, the U.S. benchmark, fell 2.3% to $102.36
U.S. a barrel in London trading, while the price of Brent crude oil, the international standard,
dropped 1.7% to $105.20 U.S.
The price drops come as COVID-19 cases continue to rise in Shanghai and other regions of
China, challenging the country of 1.4 billion people’s zero COVID-19 strategy. Shanghai
recorded 69 new COVID-19 infections over the weekend, the most since May.
Speculators in the oil market have cut their net-long positions in both Brent crude oil and WTI to
their lowest level since 2020, according to data released last week. Oil prices fell below $100
U.S. last week.
U.S. President Joe Biden is scheduled to visit Saudi Arabia this week during a tour of the Middle
East. Gasoline prices at the pumps in America have fallen for 27 consecutive days, including
the single biggest daily drop in more than a decade.
