Breaking News
Investing Pro 0
🚨 Our Pro Data Reveals the True Winner of Earnings Season Access Data

Oil Extends Losses on China Demand Concerns Ahead of OPEC+ Meet

Commodities Mar 28, 2022 08:09PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Oil Extends Losses on China Demand Concerns Ahead of OPEC+ Meet

(Bloomberg) -- Oil kept falling in Asia -- after sliding 7% on Monday -- on growing concern that a virus resurgence in China will weigh on global demand.

Futures in New York dropped around 2% to near $104 a barrel. China is tackling its worst outbreak since Wuhan more than two years ago at the start of the pandemic. The highly contagious omicron variant is testing the world’s biggest crude importer’s Covid Zero strategy.

The OPEC+ alliance, meanwhile, meets on Thursday to discuss its supply policy for May and the group has signaled it will stick to its existing policy and ratify another modest increase in output.

Oil is still heading for a monthly gain after Russia’s invasion of Ukraine rattled global markets, and the war is raging despite diplomatic efforts for a peace deal. The conflict has fanned inflation, driving up the cost of everything from fuels to food as economies recover from the pandemic.

See also: Tunnels Blocked, Flights Canceled as Curbs Hurt China Oil Demand

Shanghai is the latest Chinese city to be caught up in the outbreak. Rystad Energy estimated a staggered lockdown across the financial center could potentially reduce oil demand by as much as 200,000 barrels a day for the duration of the restrictions. About 62 million people in China are either in lockdown or facing one imminently, according to Bloomberg calculations.

OPEC+ will ratify an increase of 430,000 barrels a day scheduled for May if no alterations are made. With many members struggling to fulfill their planned increases over the past few months and global demand bouncing back from the pandemic, that decision may cause markets to tighten further.

©2022 Bloomberg L.P.

Oil Extends Losses on China Demand Concerns Ahead of OPEC+ Meet
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email