Energy Preview: Oil Stays Pressured On Demand Concerns

12 Jul 2022 , 08:54 AM

Oil prices extended drop on Tuesday amid rising concerns of fresh lockdown restriction in China that could impede energy demand. Chinas Covid cases are rising at the fastest pace since late May, renewing fears of a repeat of Shanghais two-month lockdown, which snarled global supply chains and sank hopes the country will reach Beijings economic-growth targets. Besides, mounting fears of a global economic slowdown too continue to weigh on the oil market. Dollars accruing strength amid expectations of sharp interest rate hikes also pushed the commodity lower. The dollar index climbed to a fresh near two-decade peak at 108.29 before easing slightly to 108.15, still holding firm with a gain of nearly 0.30% over the last closing level. West Texas Intermediate Crude oil futures for August was down 1.61% at $102.40 a barrel. Powered by Commodity Insights