Oil prices showed a significant decrease on Monday, extending losses from the previous week as Chinese coronavirus lockdowns continued, raising concerns about demand from the world’s biggest crude importer.
Crude for May delivery tumbled $3.97 to $94.29 a barrel after jumping $2.23 to $98.26 a barrel last Friday.
China’s largest Covid-19 outbreak in two years continues to spread despite an extended lockdown of Shanghai’s 25 million people.
The financial hub reported over 26,000 new cases on Sunday, a new record despite repeated mass testing.
With China maintaining its COVID Zero strategy, investors fear that there will be consequences for global growth, supply chains and inflation.
The move by the IEA to release oil from its reserve to help cool global prices amid the Russia-Ukraine crisis also continued to weigh on prices.