Oil slumps as Shanghai shuts to curb COVID surge

March 27, 2022 Stu Turley Commodities, Crude Oil News, International News
U.S.

 Oil prices fell more than $3 in early trade on Monday on prospects of a drop in fuel demand in China after authorities in Shanghai said they would shut the country’s financial hub for a COVID-19 testing blitz over nine days.

Brent crude futures dropped as low as $116.18 and were trading down $2.75, or 2.3%, at $117.90 a barrel at 2215 GMT.

U.S. West Texas Intermediate (WTI) crude futures hit a low of $109.90 shortly after opening and were down $2.60, or 2.3%, at $111.30. Both benchmark contrasts had risen 1.4% on Friday.

Shanghai’s city government said on Sunday all firms and factories would suspend manufacturing or have people work remotely in a two-stage lockdown over nine days, after the city reported a new daily record for asymptomatic COVID-19 infections.

Sapping fuel demand further, public transport, including ride-hailing services, will also be suspended during the lockdown.

Source: Reuters

About Stu Turley 3359 Articles
Stuart Turley is President and CEO of Sandstone Group, a top energy data, and finance consultancy working with companies all throughout the energy value chain. Sandstone helps both small and large-cap energy companies to develop customized applications and manage data workflows/integration throughout the entire business. With experience implementing enterprise networks, supercomputers, and cellular tower solutions, Sandstone has become a trusted source and advisor.   He is also the Executive Publisher of www.energynewsbeat.com, the best source for 24/7 energy news coverage, and is the Co-Host of the energy news video and Podcast Energy News Beat. Energy should be used to elevate humanity out of poverty. Let's use all forms of energy with the least impact on the environment while being sustainable without printing money. Stu is also a co-host on the 3 Podcasters Walk into A Bar podcast with David Blackmon, and Rey Trevino. Stuart is guided by over 30 years of business management experience, having successfully built and help sell multiple small and medium businesses while consulting for numerous Fortune 500 companies. He holds a B.A in Business Administration from Oklahoma State and an MBA from Oklahoma City University.

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