MELBOURNE (Reuters) – Oil prices fell in early trading on Friday, reversing further from 11-month highs hit last week, amid concerns that new loose restrictions in China will dampen demand fuel in the world’s largest oil imports.
U.S. West Texas Intermediate (WTI) crude futures fell 47 cents, or 0.9%, to $ 52.66 a barrel at 0148 GMT, after slipping 18 cents Thursday.
Brent crude futures fell 45 cents, or 0.8%, to $ 55.65 a barrel, offsetting a 2 percent gain on Thursday.
Recovery of fuel demand in China underpinned market gains late last year while the United States and Europe weakened, but that source of support is declining due to a wave new COVID-19 cases have placed a new impediment to their release.
“In fact, investors are struggling to see through short-term pain for long-term gain heading into the weekend as COVID case accounts in China are the biggest concern. in terms of demand for traders, ”said Axi’s chief market strategist Stephen Innes.
The Shanghai commercial hub reported the first cases that have been transferred locally in two months on Thursday.
Local governments in areas that have not yet been hit by major hits are embracing new loops, and Beijing is urging people not to travel through the Lunar New Year holidays, when tens of millions of urban workers usually returning to their villages.
Sudden new restrictions across the globe have adversely affected the airline’s industry, with the number of flights down 25% last week, ANZ Research said.
“This is likely to put significant pressure on jet fuel demand,” ANZ Research said in a note.
The market is awaiting official oil investment data from the U.S. Energy Information Administration on Friday, after Wednesday’s industry data showed a dramatic increase of 2.6 million barrels in U.S. crude investments last week compared to pre- analysts say to pull 1.2 million barrels. [API/S]
The EIA’s weekly report has been delayed two days due to Martin Luther King Jr.’s vacation and start date.
Reciting with Sonali Paul; Edited by Ana Nicolaci da Costa