Oil slumps 4% as Shanghai lockdowns stoke demand fears | Reuters

Oil slumps 4% as Shanghai lockdowns stoke demand fears | Reuters

Oil slumped about 4% 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.

"The prospect of slower economic growth this year amid U.S. interest-rate hikes ... has already led to a downward revision of oil-demand forecasts," analysts at the Eurasia Group consultancy said, noting "The longer the Ukraine war and the China lockdowns persist, the higher the risk that demand growth will be even weaker."

Shanghai's COVID-19 lockdown misery dragged into a fourth week, as orders for mass testing in Beijing's biggest district sparked fears that the Chinese capital could be destined for a similar fate. read more

China is the world's biggest oil importer.

Brent futures fell $4.33, or 4.1%, to settle at $102.32 a barrel, while U.S. West Texas Intermediate (WTI) crude fell $3.53, or 3.5%, to settle at $98.54.