Oil prices fell on Monday with Brent crude falling near its lowest level since January 4th, 2022.
The world’s most traded commodity fell as low as $80.78 as concerns about the outlook for fuel demand added to the downward trend that initially spiked last week. It is currently on track to post a third-straight weekly loss, with prices driven down by slowing demand in China amid COVID-19 outbreaks in the world’s second-largest crude-importing economy.
Currently, Brent crude is down $4.15, or 4 percent at $80.7 a barrel. The US West Texas Intermediate (WTI) crude lost $2.75, or 3.50 percent, to sit at $73.52 per barrel after markets resumed trade in red on Monday.
With rising concerns about Chinese demand and a lack of clear signals from oil producers to cut output further, bearish sentiment is rising in the oil market. Unless OPEC+ agrees to further reduce production quotas or the US moves to replenish its strategic petroleum reserves, oil prices may fall further.