China COVID restrictions, dismal manufacturing activity data drop oil above $1.
- China’s dismal manufacturing activity statistics and fears its COVID-19 limitations may reduce demand sent oil prices down over $1 on Monday.
- After falling 1.2% on Friday, Brent oil futures fell $1.10 to $94.67 a barrel at 0710 GMT.
- After falling 1.3% on Friday, U.S. West Texas Intermediate (WTI) crude traded at $86.83, down $1.07.
- On Monday, an official poll revealed that China, the world’s top petroleum importer, saw factory activity fall sharply in October due to falling global demand and severe COVID-19 regulations.
- China’s COVID-19 restrictions have slowed economic growth and oil demand. China’s crude oil imports declined 4.3% in the first three quarters of the year, the first yearly decline since at least 2014. Beijing’s severe COVID-19 regulations hurt gasoline usage.