Crude oil futures ended negative on Thursday (June 9), with the market pressured by news reports that Shanghai has announced a partial lockdown to curb the spread of COVID-19.
- WTI crude futures were down 60 cents, or 0.5%, at $121.51 a barrel.
- BRENT crude futures were down 51 cents, or 0.4%, at $123.07 a barrel.
The Shanghai Municipal Government has announced that Minhang district in the southwest of the city will be cordoned off to contain the spread of COVID-19. The lockdown will begin early Saturday morning (June 11), instructing people to stay home for two days to lay out carpets for widespread COVID-19 testing.
Although the lockdown of Minhang is a limited measure, there have been concerns that it could affect the reopening of Shanghai. There is also a risk that residents of the Minhang district will be asked to stay at home for another two weeks if an infected person is discovered.
However, WTI crude futures continued to hold above the $120 level as investors reacted to a report from the U.S. Federal Energy Information Administration (EIA) that gasoline inventories fell by 800,000 barrels last week.
Data shows that fuel demand in the U.S. continues to rise. The price of gasoline at the pump has also skyrocketed. According to the American Automobile Association (AAA), the average price of gasoline reached a record $4.955 per gallon on Wednesday.
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Friday, June 10, 2022