Oil falls 2% as China lockdowns outweigh proposed EU Russia oil ban | Reuters

Oil falls 2% as China lockdowns outweigh proposed EU Russia oil ban | Reuters

Oil slipped 2% on Tuesday as demand worries due to China's prolonged COVID-19 lockdowns outweighed support from a possible European oil embargo on Russia.

Beijing, reporting dozens of new cases daily, is mass-testing residents to avert a lockdown similar to Shanghai's over the past month. The capital's restaurants were closed for dining in, and some apartment blocks were sealed shut. read more

Brent crude was down $2.04 or 1.9%, at $105.54 a barrel at 1:18 p.m. EDT (1718 GMT). U.S. West Texas Intermediate (WTI) crude fell $2.06, or 2%, to $103.11 a barrel.

"There are real concerns about whether Chinese demand, which is a huge factor in global demand, will remain strong in 2022," said Gary Cunningham, director at Tradition Energy.