Oil sinks below $100 as China’s lockdowns imperil demand outlook

Oil sinks below $100 as China’s lockdowns imperil demand outlook

Oil pushed lower at the start of the week on concerns that a spreading Covid-19 outbreak in China will weigh on global demand.

West Texas Intermediate futures slid around 3% to trade below $100 a barrel amid a rout in stocks and other raw materials. Rising cases in Beijing sparked jitters about an unprecedented lockdown of the capital, while Shanghai reported record daily deaths over the weekend. The world’s biggest crude importer is heading for the worst oil demand shock since the early days of the pandemic.

China’s travails with Covid-19 add another source of volatility to an oil market that’s been whipsawed by the Russian invasion of Ukraine. The war has fanned inflation, and the European Union is discussing measures to restrict oil imports from Russia. That could tighten the market and drive prices higher.