Oil falls to near year’s lows on China demand worries

Oil falls to near year’s lows on China demand worries

Oil prices slid on Monday, falling close to their lowest level this year, as COVID-19 curbs in China, the world’s biggest crude importer, stoked concern over the outlook for fuel demand. Brent crude dropped by $1.32, or 1.6 per cent, to trade at $82.31 a barrel at 10:48 a.m. ET (7.48pm UAE time), having slumped more than 3 per cent to $80.61 earlier in the session for its lowest since January 4. US West Texas Intermediate (WTI) crude slid 75 cents, or 1 per cent, to $75.53 after touching its lowest since December 22 last year at $73.60. Both benchmarks, which hit 10-month lows last week, have posted three consecutive weekly declines. Phil Flynn, an analyst at Price Futures Group in Chicago, said oil was paring loses as investors looked ahead to an OPEC+ meeting this weekend. “Inventories are still near record lows and this probably increases the odds of an OPEC production cut.” The Organisation of the Petroleum Exporting Countries and allies including Russia, a group known as OPEC+, will meet on December 4. In October, OPEC+ agreed to reduce its output target by 2 million barrels per day through 2023. Meanwhile, Group of Seven (G7) and European Union