Oil falls as China’s worsening virus flare-up risks demand

Oil falls as China’s worsening virus flare-up risks demand

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Bloomberg

Oil retreated as China’s worsening virus resurgence raised concerns about demand in the world’s biggest crude importer.

West Texas Intermediate futures fall as much as 6.2% after authorities in Shanghai said they will lock down half of the city in turns for mass Covid-19 testing. Global growth risks from inflation and tightening monetary policy also hit market sentiments, earlier pushing sovereign bonds lower.

Russia’s invasion of Ukraine continues to disrupt supplies of key commodities — oil is heading for a fourth month of gains despite starting lower this week — and that is stoking inflation. Russian oil supply is getting squeezed as many western buyers shun purchases. The country’s exports from March 17-23 fell by more than a quarter from the previous week, according to industry data.

However, some crude is finding its way into Asia. East-bound exports of a few grades from Baltic and Black Sea ports rises to the highest in almost two years during the first 23 days of March, according to Vortexa Ltd. data. Moscow is still able to sell its crude due to price discounts and aims to keep output steady even amid