Oil extends losses on China demand concerns ahead of OPEC+ meet

Oil extends losses on China demand concerns ahead of OPEC+ meet

Oil kept falling after capping the biggest loss in almost three weeks on concern that a virus flare-up in China will weigh on global demand.

West Texas Intermediate futures edged lower to trade near $105 a barrel after sliding 7% on Monday. 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 virus resurgence adds another source of volatility to the market alongside Russia’s war in Ukraine and tensions in the Middle East. OPEC+, meanwhile, meets Thursday to discuss its supply policy for May and the group has signaled it will stick to its existing plan and ratify another modest increase in output.