Oil extended losses on concerns that China’s rapid dismantling of its Covid Zero policy could lead to a surge in infection cases across the world.
West Texas Intermediate fell 2.4 percent to trade near USD 77 a barrel. The US will require airline passengers from China to show negative virus tests, while Italy will begin testing travelers from the Asian nation upon arrival.
That’s overshadowing optimism about a longer-term demand recovery in China.
“The removal of travel restrictions could precipitate another global outbreak,” said John Driscoll, director of JTD Energy Services Pte.
“It raises the potential of a demand hit and flattening prices.”
Prices
Trading volumes have been thin this week, with the holiday period between Christmas and New Year curtailing activity. An industry report on Wednesday showed a decline in US crude inventories, with government data due later on Thursday.
