Oil prices fall on weak demand outlook after China quarantines

New waves of Covid-19 last week pretty much neutered market bulls, briefly optimistic after rumors of Beijing easing on the nation’s zero-tolerance approach to the coronavirus.

Photo: Jacob Ehrbahn

Oil is still trading at lower prices Monday morning after China imposes a new round of anti-contagion lockdowns in the populous capital city of Beijing.

New infection waves last week threw a wet blanket of commodity bulls, briefly optimistic after rumors of the Chinese government easing on the nation’s zero-tolerance approach to the coronavirus.

A barrel of European reference oil Brent with January delivery sells for USD 86.64 Monday morning CET against USD 87.18 at closing trading hours Friday afternoon. West Texas Intermediate with December delivery trades at the same time for USD 79.21 against 79.27.

Looking a week back to Friday the 11th, Brent changed hands for USD 95.99, while WTI sold for USD 88.96.

One troy ounce of gold trades for USD 1,746.10 Monday morning, with other most commodity markets also showing blinking red lights resulting from general risk aversion owing to Beijing’s closures.

Such is also clearly legible on the US’ three main indicies, S&P 500, Nasdaq and Dow Jones, falling by around 0.3%, while Germany’s DAX declines by 0.4%.

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