(Bloomberg) -- Oil declined at the open in Asia as a virus resurgence in China worsened, and Houthi-led attacks on Saudi Arabia took a pause.
Futures in New York and London lost more than 3% in early trading before paring some of those losses. Shanghai will lock down half of the city in turns to conduct a mass Covid-19 testing as authorities try to staunch an outbreak in the financial hub and beyond. Houthi rebels announced a halt to hostilities toward Saudi Arabia after a series of attacks, according to a TV report.
See also: China’s Worsening Virus Threatens Commodities Supply and Demand
Oil is still heading for a fourth monthly gain after Russia’s invasion of Ukraine roiled markets and drove prices above $100 a barrel. Most buyers are shunning the OPEC+ producer’s crude as they try and navigate financial sanctions, while Germany is planning to wean itself off Russian fossil fuels.
Crude rose on Friday after Yemen’s Houthi rebels claimed responsibility for a series of attacks on Saudi Aramco (SE:2222) facilities, including an oil storage site in Jeddah. The leader of the rebels on Saturday announced a three-day halt to hostilities after an escalation of missile, drone and ground attacks on Saudi Arabia over the past week, the rebel-run Al-Masirah TV reported.
Shanghai, a city of 25 million people, will first lock down areas east of the Huangpu River, which includes its financial district and industrial parks, for four days starting Monday. Then the lockdown will shift to the city’s west for another four days, according to a statement Sunday from the local government.
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