Oil prices fall due to tightening restrictions related to COVID-19 in China

Oil prices fell today after fears that the tightening of restrictions in China related to Covid-19 will reduce the demand for black crude, as the outbreak of the virus spreads in Chinese cities.

Brent crude futures fell 36 cents, or 0.4%, to $95.41 a barrel, after falling 1.2 percent on Friday, while US West Texas Intermediate crude fell 23 cents, or 0.3 percent, to $87.67 a barrel, after falling 1.3 percent at the close. On Friday, according to the Oman News Agency.

Stephen Innes of SBI Asset Management said that the expansion of Covid-19 restrictions in China has always raised concerns about demand from the world’s largest importer of crude.

Oil prices in global markets achieved weekly gains, as the international benchmark Brent crude rose by 2.4%, and the US West Texas Intermediate crude rose by 3.4%.

The International Energy Agency, the leading global energy forecaster, predicts that demand for fossil fuels will peak this decade for the first time, as peak gas demand looms.

Even under the IEA’s least climate-friendly scenario, gas use will only grow slowly until 2030 before stabilizing, especially since last year’s report predicted continued growth until 2050.

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