Caixin
Jul 11, 2022 04:58 PM
ECONOMY

Oil Sinks as China’s Covid Resurgence Overshadows Tight Market

An oil pump jack in Midland, Texas, in the U.S., on April 7. Photo: Bloomberg
An oil pump jack in Midland, Texas, in the U.S., on April 7. Photo: Bloomberg

(Bloomberg) — Oil declined as the prospect of more demand-sapping virus restrictions in China overshadowed signs of a tightening market.

West Texas Intermediate dropped near $103 a barrel after posting a loss last week in volatile trading. Virus cases continued to climb in Shanghai and other regions, with new subvariants providing a challenge to the country’s “zero-Covid” strategy. Concerns that the U.S. may tip into a recession are also hanging over the market as the central bank raises rates to combat inflation.

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