Crude oil closes in the red – COVID cases in China rise again

Crude oil futures closed more than 3% lower on Monday (Nov. 14) as investors feared China would take lockdown measures to contain the spread of COVID-19. In addition, the strength of the dollar is also a factor in the oil market.

  • WTI crude futures were down $3.09, or 3.5%, at $85.87 a barrel.
  • BRENT crude futures were down $2.85, or 3%, at $93.14 a barrel.

The National Health Administration of China (NHC) has confirmed that there are new COVID-19 cases in China. There were 16,203 new cases on Sunday, up from 14,878 on Saturday, November 12, and cases reached a record high in Beijing and other cities on Monday, November 14.

Investors fear that the rise in COVID-19 infections will prompt the Chinese government to impose more lockdown measures in the near future, dashing hopes that the country will open up. China has just announced a relaxation of COVID-19 control measures, shortening the quarantine period for foreign travel and eliminating fines for airlines if a passenger is infected with COVID-19.

The market was also pressured by the strong dollar. The dollar index rose against the six major currencies in a basket of currencies by 0.34% to 106.6590.

The strength of the dollar has made crude oil contracts settled in dollars more expensive for investors holding other currencies.

Investors are waiting for the release of U.S. crude oil inventory figures. The American Petroleum Institute (API) will release the data today. The U.S. government’s Energy Information Administration (EIA) will announce them tomorrow.

The Spot Market is Open

Tuesday, November 15, 2022

Energy
Updated at
USD
Price

Change

%Change
Crude Oil
10.50

85.53

-0.34

-0.40%

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