Oil prices are down Monday morning as China pledges to uphold tight anti-contagion measures, thus diminishing prospects of increasing domestic fuel demand, reports Reuters.

Rumors had otherwise been stirring that the People’s Republic was ready to ease coronavirus restrictions.

A barrel of European reference oil Brent trades for USD 97.53 Monday morning CET against USD 97.60 Friday afternoon. US counterpart West Texas Intermediate sells concurrently for USD 91.45 against USD 91.42.

”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,” the news agency cites CMC Markets analyst Tina Teng saying.

A stronger US dollar cuts into oil prices by making crude trades more costly for holders of other currencies.

Federal Reserve representatives said on Friday that the central bank is mulling further rate hikes as a part of efforts to tame inflation – a move that, all else equal, would make oil prices rise.

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