Oil slumps as China’s worsening outbreak raises demand concerns

Oil slumps as China’s worsening outbreak raises demand concerns

Oil resumed its decline as China’s virus resurgence worsened, raising concerns about demand from the world’s biggest crude importer.

West Texas Intermediate futures fell below $97 a barrel after climbing 2.3% on Friday, the first gain in four sessions. Virus cases continue to rise in Shanghai and there is no clarity on when restrictions will be lifted. The flare-up has led to disruptions at ports and prompted some refiners to trim operating rates.

Oil has now given up most of the gains seen since Russia’s invasion of Ukraine in late February following a tumultuous period of trading. The war has fanned inflation and prompted the US and its allies to release strategic reserves to cool prices. Fighting continues despite diplomatic efforts for a cease-fire.