Oil slips to 7-month low on renewed demand fears, China lockdown

Oil slips to 7-month low on renewed demand fears, China lockdown

Dubai: Oil sank to the lowest since January as the dollar surged to a record and global demand concerns escalated, including in lockdown-hit China. West Texas Intermediate fell toward $85 a barrel as risk assets from equities to commodities slumped, with a gauge of the dollar hitting an all-time high. The currency’s ascent makes oil more expensive for buyers outside the US. Crude has made a weak start to September, extending a run of three monthly losses that’s the worst streak in more than two years. With central banks jacking up rates to quell inflation, investors are concerned economies may tip into recession. In China, virus curbs are damping demand, with centers from Chengdu to Shenzhen extending lockdowns or adopting movement controls. Crude prices have erased a gain driven by a decision from the and its allies on Monday to pare output. Still, reflecting the market softness, Riyadh also . “Having priced for the OPEC+ output cut with a short-lived up-move, oil prices continue to struggle with the weaker demand outlook story,” said Yeap Jun Rong, market strategist at IG Asia Pte. “Headlines of China’s virus restrictions renewed the downward bias over the demand outlook, with an added headwind for