China Lockdown Raises Oil Demand Concerns – 25 April, 2022

Worries that ongoing COVID-19 lockdowns in China would eat into oil demand caused the commodity to fall sharply before settling slightly higher. Brent crude futures were at $102.57, up 25 cents, or 0.2% and U.S. West Texas Intermediate contracts climbed to $98.70, up 16 cents, or 0.2%. Both contracts had settled down around 4% on Monday, with Brent down as much as $7 a barrel in the session and WTI dipping roughly $6 a barrel. China lockdowns to counter COVID in Shanghai have dragged into their fourth week, while an order for mass testing in Beijing have prompted fears of lockdowns in other major cities. The U.S. dollar reached a two-year high which also made oil more expensive for other currency holders.