Tags: oil | prices | fall | china | virus | climate | report

Oil Slides 4% on China Virus Curbs and Climate Warning

Oil Slides 4% on China Virus Curbs and Climate Warning

Monday, 09 August 2021 07:00 AM EDT

Oil prices fell by 4% on Monday, extending last week's steep losses on the back of a rising U.S. dollar and concerns that new coronavirus-related restrictions in Asia, especially China, could slow a global recovery in fuel demand.

A United Nations panel's dire warning on climate change also added to the gloomy mood after fires in Greece have razed homes and forests and parts of Europe suffered deadly floods last month.

Brent crude futures fell by $2.82, or 4.2%, to $67.88 a barrel by 0930 GMT after a 6% slump last week for their biggest weekly loss in four months.

U.S. West Texas Intermediate (WTI) crude futures fell $2.85, or 4.3%, to $65.43 after plunging by nearly 7% last week. On Monday the contract fell as low as $65.15, its lowest since May.

"Concerns about potential global oil demand erosion have resurfaced with the acceleration of the Delta variant infection rate," RBC analyst Gordon Ramsay said in a note.

ANZ analysts pointed to new restrictions in China, the world's second-largest oil consumer, as a major factor clouding the outlook for demand growth.

The restrictions include flight cancellations, warnings by 46 cities against travel and limits on public transport and taxi services in 144 of the worst hit areas.

On Monday China reported 125 new COVID-19 cases, up from 96 a day earlier. In Malaysia and Thailand, infections hit daily records.

China's export growth slowed more than expected in July after outbreaks of COVID-19 cases and floods while import growth was also weaker than expected.

"Both (benchmark crude) contracts look vulnerable to more bad news on the virus front, focusing on mainland China," OANDA senior market analyst Jeffrey Halley said in a note.

China's crude oil imports fell in July and were down sharply from the record levels of June 2020.

A rally in the U.S. dollar to a four-month high against the euro also weighed on oil prices after Friday's stronger than expected U.S. jobs report spurred bets that the Federal Reserve could move more quickly to tighten U.S. monetary policy.

A stronger U.S. dollar makes oil more expensive for holders of other currencies.

© 2025 Thomson/Reuters. All rights reserved.


StreetTalk
Oil prices fell by 4% on Monday, extending last week's steep losses on the back of a rising U.S. dollar and concerns that new coronavirus-related restrictions in Asia, especially China, could slow a global recovery in fuel demand. A United Nations panel's dire warning on...
oil, prices, fall, china, virus, climate, report
354
2021-00-09
Monday, 09 August 2021 07:00 AM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Newsmax2 Live
 
On Now:9:30p ET • The Big Focus
Coming Up:10:00p ET • The Freedom File: Judge Napolitano
Get Newsmax Text Alerts

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© 2025 Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved