Oil prices lost their early gains on Thursday after parts of Shanghai put in place new COVID-19 lockdown measures. This was more important than news that China’s exports in May were better than expected.

At 06:30 GMT, Brent crude futures for August fell 15 cents, or 0.1 percent, to $123.43 a barrel, while U.S. West Texas Intermediate crude futures for July fell 20 cents, or 0.2 percent, to $121.91 a barrel.

Both benchmarks closed Wednesday at their highest level since March 8, 2008, which was also when they were at their highest.

As COVID restrictions were eased, some factories were able to start up again. This was the fastest growth since January of this year and was more than double what analysts had expected. go to site

But even though the Chinese trade numbers were good, they didn’t keep oil prices high for long.

“Far more important is the news that a district of Shanghai has been locked down today. This news brings back worries that China’s covid-zero policies are making another part of the country weak. This is stopping any progress in Asia right now “Jeffrey Halley, a senior market analyst for Asia Pacific at OANDA, said that.

On Thursday, new lockdown rules went into effect in parts of Shanghai. Residents of the large Minhang district were told to stay home for two days to reduce the risk of COVID spreading.

At the same time, the peak summer demand for gasoline in the US kept prices from falling.

The U.S. had a record drop in strategic crude reserves last week, even though commercial stocks went up, according to data released Wednesday by the Energy Information Administration (EIA).

Gasoline stocks in the U.S. dropped more than expected, which shows that even though pump prices are through the roof, people are still buying gasoline. go to site

Source: Reuters

LEAVE A REPLY

Please enter your comment!
Please enter your name here