Oil dives 6% as Shanghai lockdowns stoke demand fears | Reuters

Oil dives 6% as Shanghai lockdowns stoke demand fears | Reuters

Oil slumped about 6% on Monday to its lowest in two weeks on growing worries about the global energy demand outlook due to prolonged COVID-19 lockdowns in Shanghai and potential increases in U.S. interest rates.

In Shanghai, authorities have erected fences outside residential buildings. In Beijing, many people have begun stockpiling food, fearing a similar lockdown after the emergence of a few cases of COVID-19. read more

"It seems that China is the elephant in the room," said Jeffrey Halley, analyst at brokerage OANDA. "The tightening COVID-zero restrictions in Shanghai, and fears Omicron has spread in Beijing, torpedoed sentiment today."

Brent futures fell $6.17, or 5.8%, to $100.48 a barrel by 11:12 a.m. EDT (1512 GMT). U.S. West Texas Intermediate (WTI) crude fell $5.91, or 5.8%, to $96.16.