• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Russia Says Europe Will Struggle To Replace Its Oil Products
  • 22 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 15 hours Reality catching up with EV forecasts
  • 8 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 3 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 8 days A Somewhat Realistic View of the Near Future for Electric Vehicles Worldwide
  • 14 days The Federal Reserve and Money...Aspects which are not widely known
Will U.S. Shale Ever Return To Its Glory Days?

Will U.S. Shale Ever Return To Its Glory Days?

While American shale production isn’t…

Russian Oil Exports Plunged By 820,000 Bpd Last Week

Russian Oil Exports Plunged By 820,000 Bpd Last Week

Russia’s crude oil exports plunged…

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.

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.

ADVERTISEMENT

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.

ADVERTISEMENT

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


ADVERTISEMENT


ADVERTISEMENT



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