Oil down over demand fears after China reinforces strict Covid policy

By Sibel Morrow

ANKARA (AA) - Oil prices declined on Tuesday due to looming demand fears after China reaffirmed the continuation of its strict pandemic policy.

International benchmark Brent crude traded at $97.82 per barrel at 10.01 a.m. local time (0701 GMT) for a 0.10% decrease from the closing price of $97.92 a barrel in the previous trading session.

The American benchmark West Texas Intermediate (WTI) traded at $91.60 per barrel at the same time, a 0.21% loss after the previous session closed at $91.79 a barrel.

China reaffirmed its unwavering adherence to its long-standing "zero-Covid" policy amid fears of falling oil demand, bolstering bearish market sentiment.

China’s strict pandemic policies "are completely correct, and the most economical and effective," said Hu Xiang, a disease control official, on Monday.

However, according to official customs data, China's imports of crude oil increased in October for the first year-on-year growth since May, to 43.14 million tons.

Meanwhile, OPEC producers have started cutting their collective output by 2 million barrels per day (bpd) in accordance with their recent decision, adding to supply concerns.

The looming sanctions deadline on Russian oil exports to Europe, which takes effect on Dec. 5, is also weighing on the market.