Crude oil prices fell sharply on Monday amid concerns about the outlook for energy demand from China and on a downward revision in demand growth forecast by OPEC.
A stronger dollar weighed as well on oil prices. The dollar climbed to 107.27 in the Asian session today, and despite paring some gains subsequently, was up nearly 0.4% at 106.70 a little while ago.
West Texas Intermediate Crude oil futures for December ended lower by $3.09 or about 3.5% at $85.87 a barrel.
Brent crude futures were down $3.25 or 3.39% at 92.74 a barrel.
In its monthly report, the Organization of the Petroleum Exporting Countries cut its forecast for global oil demand growth this year by 100,000 barrels a day to 2.55 million barrels per day.
The agency cited mounting economic challenges as reason for the downward revision.
China has reported a surge in Covid cases last weekend. According to reports, Beijing and other big cities are seeing record infections today.
The National Health Commission reported 16,072 new locally transmitted cases today, up from 14,761 on Sunday and the highest in the country since April 25.
