Oil falls on Beijing's COVID-19 warning, inflation worries | Reuters

Oil falls on Beijing's COVID-19 warning, inflation worries | Reuters

Oil dropped almost $2 a barrel on Monday as a flare-up in COVID-19 cases in Beijing dented hopes of a Chinese demand rebound, while worries about more interest rate hikes to control rampant inflation added further pressure.

Beijing's most populous district Chaoyang announced three rounds of mass testing to quell a "ferocious" COVID-19 outbreak that emerged last week. Mass testing would take place until Wednesday. read more

Brent crude was down $1.54, or 1.3%, to $120.47 at 1213 GMT, while U.S. West Texas Intermediate crude fell $1.82, or 1.5%, to $118.85.

"The present price fall is exacerbated by warnings of a 'ferocious' spread of the COVID virus in Beijing by officials, casting doubt on immediate demand recovery," said Tamas Varga of oil broker PVM.