Oil falls, pressured by China lockdowns and release of reserves

Oil falls, pressured by China lockdowns and release of reserves

Oil prices slipped $2 a barrel in early Asian trading on Monday, following a second straight weekly decline after world consumers announced plans to release a record volume of crude and oil products from strategic stocks and as China lockdowns continued. Brent crude fell $2.04, or 2 percent, to $100.74 a barrel at 0139 GMT, while US West Texas Intermediate crude lost $1.94, or 2 percent, to $96.32. Last week, Brent dropped 1.5 percent while US oil slid 1 percent. For several weeks, the benchmarks have been at their most volatile since June 2020. The market has been watching developments in China, where authorities have kept Shanghai, a city of 26 million people, locked down under its “zero tolerance” for COVID-19. China is the world’s biggest oil importer. Member nations of the International Energy Agency (IEA) will release 60 million barrels over the next six months, with the United States matching that amount as part of its 180 million barrel release announced in March. The moves are aimed at offsetting a shortfall in Russian crude after Moscow was hit with heavy sanctions following its invasion of Ukraine. “Oil is losing steam due to the joint efforts of the oil reserve