Oil Prices Fall for a Fourth Day as China’s Covid Curbs Threaten Global Demand

Oil prices fell for a fourth day on Thursday, as investors worried that new Covid-19 restrictions in China, the world’s largest crude importer, will reduce fuel demand.

By 8:15 AM (Thai time), Brent crude futures had dropped 34 cents, or 0.4%, to $92.31 per barrel. The price of a barrel of U.S. West Texas Intermediate (WTI) oil was $85.52, down 31 cents from the previous day.

Prices for Brent crude oil have fallen by over 6% this week, while those for WTI have fallen by over 7%.

Guangzhou, China, a city of 19 million people and a major manufacturing hub, reported more than 2,000 new cases on Wednesday (Nov. 9), the third day above that threshold, according to local authorities. Millions of residents were ordered to get tested for Covid-19, and one city was closed down, as local cases in China reached their highest level since April 30.

Worsening market sentiment was a report of a sharp increase in U.S. crude inventories on Wednesday.