WTI crude oil prices fell more than 3.5% this morning after Shanghai, China’s financial center, announced lockdown measures to control the COVID-19 outbreak. This could affect oil demand in the short term.
- WTI crude futures fell $3.50, or 3.07%, at $110.36 a barrel.
- Brent crude futures fell $2.70, or 3.17%, at $114.04 a barrel.
The Chinese city of Shanghai has announced a massive lockdown for COVID-19 testing. The lockdown will be divided into two parts and will begin today (March 28).
The first phase of the lockdown covers the eastern and southern regions of the Huangpu River basin for COVID-19 testing. The second closure will cover the urban areas on the western side of the Huangpu Valley to reach a wide public.
The temporary lockdown measures are designed to contain the spread of COVID-19 and protect people’s lives, as well as to achieve the Chinese government’s zero COVID goal.
During the enforcement of this lockdown measure, people are asked not to leave their homes. During the period, public transport will be suspended and private vehicles will be allowed on the streets only if necessary.
In addition, businesses are ordered to close their operations or have their employees work from home, with the exception of convenience stores for the public, which are allowed to be open but must be under supervision.
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Monday, March 28, 2022