Oil prices eases to $98 a barrel as China Covid-19 cases dampen spirits

Oil slipped as investors weighed China’s renewed commitment to strict anti-Covid-19 policies against a global market backdrop of depleted inventories. 

Brent edged down below $98 a barrel, after losing ground in the week’s opening session as China reaffirmed its commitment to its zero Covid-19 strategy, including demand-sapping movement curbs and lockdowns. On Monday, more than 7,000 local cases were reported in the world’s largest crude importer, the highest daily number in more than six months. 

Though prices edged lower on Tuesday, they were trading in a relatively narrow range, with production cuts from the OPEC+ grouping helping to underpin a recent renewed push toward $100 in the global Brent oil benchmark. OPEC+ can respond if more oil supply is needed on the market, Oman’s oil minister said on Tuesday.