Crude oil prices fell sharply on Monday, pushing the most active crude futures contract to a 2-week closing low, as a resurgence in Covid cases in China raised concerns about energy demand.
A strong U.S. dollar amid rising prospects of a series of sharp interest rate hikes by the Federal Reserve weighed as well on crude oil prices.
West Texas Intermediate Crude oil futures for June ended down by $3.53 or about 3.5% at $98.54 a barrel.
Brent crude futures were down $3.47 or 3.27% at $102.68 a barrel a little while ago.
Covid cases are on the rise in Shanghai with the city reporting over 19,000 new infections in the last 24 hours. Also, reports indicate a possibility of Beijing imposing fresh lockdown measures in several areas to curb the spread of the virus.
In Beijing, many people have reportedly begun stockpiling food, fearing a lockdown after the emergence of a few cases of COVID-19.
