Oil falls on recession jitters, China COVID curbs

2022-07-11T06:24:25.000000Z

Shafaq News/ Oil prices fell around $1 on Monday in volatile trade, reversing some gains from the previous session, as worries about a recession and China's COVID-19 curbs hitting demand outweighed ongoing concerns about tight supply.

Brent crude futures fell 82 cents, or 0.8%, to $106.20 at 0314 GMT, after climbing 2.3% on Friday.

U.S. WTI crude futures declined by $1.04, or 1%, to $103.75, paring a 2% gain from Friday.

Trading was thinned by a public holiday in parts of Southeast Asia, including oil trading hub Singapore.

Both contracts posted weekly declines last week as the market was dominated by worries that rising interest rates to curb inflation would spark a recession and dent oil demand.

"Net long positions in WTI crude futures are now at their lowest level since March 2020, when demand collapsed amid the initial outbreak of COVID-19. This is despite ongoing signs of tightness," ANZ Research analysts said in a note.

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