Oil falls on Beijing's COVID-19 warning and inflation concerns | Reuters

Oil falls on Beijing's COVID-19 warning and inflation concerns | Reuters

Oil prices dropped more than $2 on Monday as a flare-up in COVID-19 cases in Beijing dashed hopes for a rapid pick-up in China's fuel demand, while worries about global inflation and sluggish economic growth further depressed the market.

Brent crude futures fell $2.3, or 1.89%, to $119.71 a barrel by 0647 GMT, while U.S. West Texas Intermediate crude was at $118.4 a barrel, down $2.27, or 1.88%.

Prices fell after Chinese officials warned on the weekend of a "ferocious" spread of COVID-19 in the capital, where mass testing is planned until Wednesday. read more
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"China remains the significant near-term downside risk, but most view the gradual normalisation of Chinese demand as a powerful positive for oil," Stephen Innes of SPI Asset Management said in a note.