Crude Oil Falls by More than 6% After Big Gains Last Week

Crude oil futures fell more than 6% on Monday (May 9), after prices had risen again in recent days. In the last week alone, Brent and WTI have gained over 5%. Concerns continue to be caused by China, which continues to operate lockdown measures in Shanghai and now also in Beijing.

  • WTI crude futures fell $6.68, or 6.1%, at $103.09 a barrel.
  • BRENT crude futures fell $6.45, or 5.7%, at $105.94 a barrel.

Shanghai, China’s financial center with a population of 25 million, remains under lockdown. Beijing has been cordoned off in some areas, and traveler control measures have been taken to contain the spread of COVID-19 in accordance with the zero-covid policy.

Investors are concerned that China, the world’s largest oil importer, may hurt oil demand through long-term lockdown measures. Recent indications are that Chinese oil imports fell 4.8% in the January-April period compared to the same period last year.

Investors are watching as countries prepare for sanctions against Russian oil. At the meeting, G7 leaders pledged to stop importing Russian oil. European Commission President Ursula von der Leyen has proposed that EU member states suspend imports of Russian crude oil and refined oil products.

Investors are also paying attention to the weekly report on U.S. crude oil inventories, which the EIA will publish tomorrow.

The Spot Market is Open

Tuesday, May 10. 2022

Energy
Updated at
USD
Price

Change

%Change
Crude Oil
10.40

101.34

-1.75

-1.70%

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