"Oil prices drop amid China COVID curbs, possible rate hikes"

" \n Oil prices drop amid China COVID curbs, possible rate hikes \n \n\n \n Oil prices\u00a0fell on Monday with the global fuel demand outlook overshadowed by COVID-19 restrictions in China and the potential for further interest rate hikes in the United States and Europe. \n \n\n \n Brent crude futures dropped US$1.01, or 1.1%, to US$91.83 a barrel by 0630 GMT, after settling 4.1% higher on Friday. U.S. West Texas Intermediate crude was down US$1.13 at US$85.66 a barrel, or 1.3%, after a 3.9% gain in the previous session. \n \n\n \n Prices were little changed last week as gains from a nominal supply cut by the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, a group known as OPEC+, were offset by ongoing lockdowns in China, the world\u2019s top crude importer. \n \n\n \n China\u2019s oil demand could contract for the first time in two decades this year as Beijing\u2019s zero-COVID policy keeps people at home during holidays and reduces fuel consumption. \n \n\n \n \u201cThe lingering presence of headwinds from China\u2019s renewed virus restrictions and further moderation in global economic activities could still draw some reservations over a more sustained upside,\u201d said Jun Rong Yeap, market strategist at IG. \n \n\n \n \u201cThe overall negatives seem to outweigh the positives,\u201d said Yeap, adding the $85 mark for Brent crude prices could be in sight. \n \n\n \n Meanwhile, the European Central Bank and the Federal Reserve are prepared to increase interest rates further to tackle inflation, which could lift the value of U.S. dollar against currencies and make dollar-denominated oil more expensive for investors. \n \n\n \n \u201cDemand concerns centred on the impact of rising interest rates to combat inflation and China\u2019s COVID-zero policy,\u201d Commonwealth Bank of Australia analyst Vivek Dhar wrote in a note. \n \n\n \n Still, global oil prices may rebound towards the end of the year \u2013 supply is expected to tighten further when a European Union embargo on Russian oil take effect on Dec. 5. \n \n\n \n The G7 will implement a price cap on Russian oil to limit Russia\u2019s lucrative oil export revenue following its invasion of Ukraine in February, and plans to take measures to ensure that the oil could still flow to emerging nations. Moscow calls its actions in Ukraine \u201ca special operation\u201d. \n "

"Oil prices drop amid China COVID curbs, possible rate hikes"

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