• 3 minutes Australian power prices go insane
  • 7 minutes Wind droughts
  • 11 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 2 hours Is Europe heading for winter of discontent with extensive gas shortages?
  • 11 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 days Hopes Are Dashed For International Oil Companies In North Iraq
  • 13 hours 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
  • 20 hours The United Nations' AGENDA 2030 - The vision for One World Governance ...an article by the famous Dr Robert Malone
  • 4 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 56 mins "Mexico Plans to Become an Export Hub With US-Drilled Natural Gas" - Bloomberg - (See image)
  • 8 hours "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 1 day The Federal Reserve and Money...Aspects which are not widely known
  • 5 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
Clean Energy Stocks Are Shining

Clean Energy Stocks Are Shining

The recently approved climate bill…

IEA Sees Higher Oil Demand This Year

IEA Sees Higher Oil Demand This Year

Global crude oil demand will…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Oil Drops Amid Rising Chinese COVID Cases And Stronger Dollar

The oil price rally fizzled out early on Monday as the U.S. dollar strengthened and as China further restricted movement amid doubled new COVID cases, prompting renewed concerns about oil demand.

As of 10:28 a.m. ET on Monday, WTI Crude prices were down by 0.84 percent at $51.84. Brent Crude prices had slipped by 1.11 percent at $55.37, after briefly topping $56 a barrel on Friday.

The rally in oil, which last week posted its largest weekly gain since September, cooled off as this week began.

Last week, oil prices gained more than 8 percent after Saudi Arabia said last Tuesday that it would unilaterally cut 1 million barrels per day (bpd) from its crude oil production levels in February and March, giving the market a very positive surprise at the end of the OPEC+ ministerial meeting.  

But this week, news out of China and a rising U.S. dollar snapped oil’s winning streak.

In China, authorities reported on Sunday a doubling of the new coronavirus cases, which resulted in stricter restrictions on movement in the world’s largest oil importer.

China has so far supported the oil market and oil prices with its healthy crude demand, while Europe and the U.S. were on lockdowns. Part of the new cases in China were imported, but nearly 50 were local transmissions, most of which in the Hebei province surrounding Beijing.

On Monday, the authorities reported the largest daily rise in COVID cases in mainland China in over five months.

A rising U.S. dollar also weighed on oil prices on Monday, as a stronger U.S. currency makes crude buying more expensive for holders of other currencies.

“Having broken above US$56/bbl briefly on Friday, ICE Brent has come under some selling pressure this morning in Asia, with a stronger USD providing some resistance to the market,” ING strategists Warren Patterson and Wenyu Yao said on Monday.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Mamdouh Salameh on January 11 2021 said:
    Volatility is the name of the game for oil prices. Therefore, a drop or a rise of few cents in oil prices is neither here or there.

    Still, Brent crude price is projected to hit $60 a barrel in the first quarter of 2021 and rise to $70-$80 by the third quarter averaging $60-$65 in 2021. Moreover, global oil demand is projected to recover to 2019 levels by the middle of this year.

    Prices will be underpinned by sound fundamentals of the global oil market, OPEC+ production cuts, the rollout of vaccines across the world and China’s and India’s insatiable thirst for oil.

    Dr Mamdouh G Salameh
    International Oil Economist
    Visiting Professor of Energy Economics at ESCP Europe Business School, London

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