Shanghai Covid: Oil prices fall after city starts lockdown
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Global oil prices have fallen as China starts to implement a city-wide lockdown in Shanghai, an important financial and manufacturing hub.
Brent crude lost more than $4.50 a barrel on concerns that the move would mean that demand for oil will fall.
The Shanghai Composite stock index fell in early trade before regaining most of the losses later in the day.
The lockdown, which began on Monday, is China’s largest since the coronavirus outbreak began more than two years ago.
The futures contract for Brent crude – an international benchmark for oil prices – was down by 4% at $115.80 a barrel.
Despite the fall, oil remains almost 80% higher than it was a year ago after the war in Ukraine helped to drive up prices.
Traders were concerned about the effectiveness of China’s zero-tolerance policy towards Covid, said Stephen Innes, managing partner at SPI Asset Management.
ABOUT: Nana Kwesi Coomson
[email protected] An Entrepreneur, Corporate Social Responsibility, Corporate Communications Executive and Philanthropist. Editor-in-Chief of www.233times.com. A Senior Journalist with Ghanaian Chronicle Newspaper. An alumnus of Adisadel College where he read General Arts. His first degree is in Bachelor of Arts - Political Science (major) and History (minor) from the University of Ghana. He holds MSc in Corporate Social Responsibility (CSR) and Energy with Public Relations (PR) from the Robert Gordon University in the United Kingdom. He is a 2018 Mandela Washington Fellow who studied at Clark Atlanta University in USA on the Business and Entrepreneurship track.
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