China’s northeastern port of Dalian, southern tech hub of Shenzhen and southwestern Chengdu are some of the cities experiencing fresh outbreaks and facing strict lockdown measures. This could lead to the country’s economic activity to take a slump again. China is the world’s largest oil importer.
West Texas Intermediate (WTI) crude futures dropped by over 2 per cent to $89 per barrel, while brent crude prices dropped by over 3 per cent to reach $95 per barrel on Wednesday. Rising inflation, recession fears, fresh COVID curbs in China and the tightening of monetary policies by global economies are some of the reasons for the decrease in oil prices.
Meanwhile, European Central Bank is contemplating a rate hike of 75bps to control inflation, while the Federal Reserve System of the US will also keep borrowing costs restrictive in the near future, according to global media reports.
Additionally, oil supply from OPEC has not been affected despite unrest in member countries like Iraq and Libya.
Fibre2Fashion News Desk (KD)