• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 6 days The United States produced more crude oil than any nation, at any time.
  • 3 hours Could Someone Give Me Insights on the Future of Renewable Energy?
  • 7 days How Far Have We Really Gotten With Alternative Energy
  • 11 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 10 days James Corbett Interviews Irina Slav of OILPRICE.COM - "Burn, Hollywood, Burn!" - The Corbett Report
  • 10 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
Oil Moves Down on Crude Inventory Build

Oil Moves Down on Crude Inventory Build

Crude oil prices moved lower…

U.S. Oil and Gas Boom Poses Challenge to Climate Goals

U.S. Oil and Gas Boom Poses Challenge to Climate Goals

Despite renewable energy efforts, the…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

China Covid Protests Weigh On Oil

  • Growing protests in China against the tough zero-covid policy are having a negative impact on crude prices.
  • The latest flare-up of infections sparked a wave of protests across the country over the weekend.
  • Brent crude dropped to $81 at the start of the week.
Face masks

Growing protests in China against the government’s zero-Covid policy are pressuring oil prices as they spread across the country, casting doubt over the country’s continued oil demand resilience.

The latest flare-up of infections sparked a wave of protests across the country over the weekend, and by Monday morning, their effect on oil prices was already evident, with WTI falling below $75 per barrel in morning trade in Asia and Brent crude dropping to $81 per barrel for the first time since January as traders rushed to sell.

“On top of growing concerns about weaker fuel demand in China due to a surge in COVID-19 cases, political uncertainty, caused by rare protests over the government’s stringent COVID restrictions in Shanghai, prompted selling,” a Nissan Securities analyst told Channel News Asia.

This effect will likely continue as the protests continue. Protests are not a common occurrence in China, and now reports are saying there are protests in several large cities, although, as CNBC noted, the scale of the unrest remains unclear.

The very fact that people are protesting, however, is enough to cause a surge in volatility in oil markets. And reports about clashes between protesters and the police have only contributed to this.

Channel News Asia reported earlier today that protesters and the police had clashed in Shanghai after three days of protests.

Some analysts believe OPEC+ will need to intervene with a further production cut to prevent prices from falling further.

“Bearish sentiment is growing in the oil market with mounting concerns over demand in China and a lack of clear signs from oil producers to further cut output,” the chief executive of Emori Fund Management, a Japanese asset manager, told CAN.

“Unless OPEC+ agrees on a further reduction of production quota or the United States moves to reload its strategic petroleum reserves, oil prices may be headed further down,” Tetsu Emori also said.

By Irina Slav for Oilprice.com


More Top Reads From Oilprice.com:

Download The Free Oilprice App Today

Back to homepage

Leave a comment
  • Carlos Blanco on November 28 2022 said:
    The recession and endless lockdown in China will force the oil price into the bear market. Xi would not want to lose face by ending the zero covid policy.

    This should be great news for a majority of us. This will help cool off the inflation that has been a disaster for the world.

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News