Crude oil pushed lower during the start of the week on concerns that increasing COVID-19 infections in China to weigh on global demand for oil.
The U.S. West Texas Intermediate futures dropped by 2.87% to $99.14 while the Brent inched down by 2.84% to $103 a barrel.
Shanghai reported record daily deaths over the weekend with authorities in Beijing warned virus could silently spread quickly.
The development put more pressure on oil’s volatility as the market is already struggling with the war in Russia.
“Demand worries are back in focus,” said Vandana Hari, founder of Vanda Insights in Singapore, citing China’s virus lockdowns and easing global economic growth. “Risk is skewed to the downside.”