Oil dips over 6% on growing worries about global energy demand outlook

Oil slumped more than 6 per cent on Monday to its lowest in two weeks on growing worries about the global energy demand outlook due to prolonged Covid-19 lockdowns in Shanghai and potential increases in US interest rates. Gold, too, declined significantly.
 
“It seems that China is the elephant in the room,” said Jeffrey Halley, analyst at brokerage OANDA. “The tightening Covid-zero restrictions in Shanghai, and fears Omicron has spread in Beijing, torpedoed sentiment today.”
 
Brent futures fell $6.63, or 6.22 per cent, to $100 a barrel by 9.55 pm IST. US West Texas Intermediate (WTI) crude fell $6.15, or 6.03 per cent, to $95.92.
 
Both benchmarks were on track for their lowest close since April 11.
 
Gold, too, was down 1.8 per cent to $1,895.36 per ounce. “It seems that fears about rate hikes have gotten the upper hand as of late,” said Julius Baer analyst Carsten Menke.