Oil prices today: Crude oil plunges as China begins large-scale COVID testing
Oil prices fell in early Asian trade on Thursday as concerns over rising coronavirus cases in the world’s biggest oil importer China weighed on futures markets.
China’s capital Beijing reported 48 new symptomatic and 2 new asymptomatic COVID-19 cases for April 27, state broadcaster CCTV reported on Thursday.
The city recorded 31 symptomatic cases and three asymptomatic cases a day earlier, as it launched a massive testing program aimed at preventing a new outbreak.
Brent crude futures fell 37 cents, or 0.4 per cent, to $104.95 a barrel by 0006 GMT. US West Texas Intermediate crude futures fell 27 cents, or 0.3 per cent, to $101.75 a barrel.
Authorities in Beijing continue to crack down on COVID-19 outbreaks and are trying to avert a city-wide shutdown that has engulfed Shanghai for a month.
China’s Hangzhou city, home of e-commerce giant Alibaba, will conduct large-scale COVID testing from April 28, state media reported on Wednesday.
Adding support to the market following Russia’s invasion of Ukraine and sanctions imposed on Moscow by the United States and its allies has raised concerns about tight supplies of energy around the world.
Russian energy giant Gazprom said on Wednesday it had stopped gas supplies to Bulgaria and Poland.
British major Shell said it would no longer accept refined oil mixed with Russian products, according to trade documents, while Exxon Mobil said it had announced a major force majeure on its Sakhalin-1 operations in Russia’s far eastern part.