While US oil consumption is expected to pick up further over a busy summer-driving season, energy usage in China has been crimped by the harsh lockdowns imposed in key cities to combat coronavirus outbreaks.
Oil fell as Chinese efforts to cushion the impact of antivirus lockdowns failed to reassure investors over the outlook for Asia’s top economy. West Texas Intermediate sagged below $109 a barrel after ending little changed on Monday.
The drop came even as China rolled out a broad package of measures to support businesses and aid demand, including policies to help people buy cars and ensure cargo transport runs smoothly. Crude retreated alongside other industrial commodities, including copper and iron ore.
As China’s curbs drag on, banks are pruning forecasts for growth in the largest oil importer. UBS Group
First Published: May 25 2022 | 2:18 AM IST