BEIJING: Oil prices fell in the global market due to the possibility of a decrease in oil demand due to the increase in corona cases in China and fears of recession.
According to the details, after the continuous increase in corona cases in China, as a result of the lockdown implemented in different cities of the country, there has been a significant decrease in the demand for oil.
The reason for the decline in global oil prices was seen due to the spread of the Corona epidemic in China, which has raised fears that the demand for petroleum products of a major consumer of energy in the world may decrease further.
A foreign news agency According to the report China, the world’s largest crude oil importer, is under the grip of the Corona epidemic, which has raised fears of a drop in fuel demand.
Global oil prices fell on Wednesday, with Brent crude futures down 60 cents, or 0.6 percent, at $93.26 a barrel by 0501 GMT, while U.S. West Texas Intermediate crude futures settled at $69. cents, or 0.8 percent, to $86.23 a barrel.
Despite rising cases of Covid-19 in China and hopes arising from the easing of lockdown restrictions, oil demand has been dampening rather than rising.
In addition, the International Energy Agency (IEA) has forecast an increase in oil demand in 2023, which will decrease from 2.1 million bpd this year to 1.6 million bpd.
In China, authorities are grappling with a new wave of the Corona epidemic, with the country’s largest city, Shanghai, under lockdown, which has caused a major drop in energy demand.
In addition, experts say that China is the second largest economy in the world, its economic situation has a strong impact on the consumption of oil and industrial materials in the global market.