Oil slides on China COVID worries | Reuters
Oil prices fell in volatile trade on Monday, reversing most of the previous session's gains as markets braced for an expected drop in demand because of mass testing for COVID-19 in China, which outweighed ongoing concern over tight supply.
Brent crude futures fell $2.08, or 1.9%, to $104.94 by 1221 GMT after climbing 2.3% on Friday. U.S. West Texas Intermediate (WTI) crude futures declined by $2.55, or 2.4%, to $102.24, paring a 2% gain from Friday.
The market was rattled by news that China had discovered its first case of a highly transmissible Omicron subvariant in Shanghai and that new cases had jumped to 63 in the country's largest city from 52 a day earlier. read more
The discovery of the new subvariant and the highest number of daily new cases in Shanghai since May could lead to another round of mass testing, which would hurt fuel demand.
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