Oil prices plunge as China maintaining "Zero-Covid" policy
Oil prices fell sharply on Tuesday due to worsening demands and COVID-19 breaks in China, the biggest crude oil importer.
BEIJING, China (TechtUSA) - Oil prices plunged on Tuesday due to the stataments made by Chinese health officials about the country's aim to maintain the Chinese Zero-Covid policy. This fueled concerns about demand in the China, who is the world's biggest crude oil importer.
The brent crude oil has fallen 84 cents(%0.9), to $97.08 a barrel by 1006 GMT as US West Texas Intermediate (WTI) crude fell 96 cents(%1) to $90.83.
As a result of China's Zero-Covid pandemic policy, which is hindering economic recovery and affecting fuel demand, the general outlook of the country's economic development deteriorated on Tuesday.
Oil prices fell sharply in early Tuesday as importers were refraining from purchasing higher-priced crude oil due to the rising value of the US dollar. Moreover, there are escalading worries reducing demand for oil in China due to COVID-19 lockdown, that is connected to dipping price of crude oil.
In addition, CMC Markets analyst Tina Teng stated "On the back of sticky inflation and rising interest rates in major western countries, oil futures are still pricing in the possibility of a global economic recession,"
