Oil prices fluctuated today as demand weakened in China, the world’s largest importer of crude oil. The escalation of COVID-19 figures is reported to be one reason for this trend.
As we recently revealed, 39 COVID-19 deaths have been recorded in Shanghai, the highest daily figure since closure.
COVID-19: In addition to Shanghai, investors fear a similar scenario in Beijing
The possibility of restrictions in the country caused by COVID-19, a barrier to industrial activity and travel, affected the delivery negotiations for the Brent barrel in June, the European benchmark of 4.51% to $ 101.84, according to data revealed by Ephe.
The North American benchmark, a barrel of West Texas Intermediate (WTI), for delivery in the same month, fell about 4.55% to $ 97.43.
Despite the fact that almost all of Shanghai’s 25 million people have been closed for COVID-19 since early April, investors fear a similar scenario in Beijing, where the number of cases detected is rising.
"China is the world's second largest economy, so this will have a direct impact on the commodity market," the analyst added.
According to Bloomberg, demand for certain fuels in China, such as gasoline, diesel or jet fuel, fell 20% this month compared to the same period last year.
Commerzbank analyst Carsten Fritsch said "oil prices are unlikely to fall much anymore" as Russian production continues to fall and production has recovered in some places in Libya.
Coronavirus disease (COVID-19) is an infectious disease caused by the SARS-CoV-2 virus. Most people infected with COVID-19 suffer from mild to moderate symptoms and recover without special treatment. However, some become seriously ill and need medical attention.