Energy Preview: WTI Crude Oil Extends Decline On Demand Worries

10 May 2022 , 08:29 AM

WTI crude futures extend decline to fresh weekly lows around $101.25 per barrel amid resurfacing concerns about weakening global demand and slowing economic activity, particularly from top consumer China due to tightening lockdowns. Rising curbs in China with extreme lockdown measures in Beijing and Shanghai to contain the epidemic of the Covid-19 have raised concerns over the current demand for oil. West Texas Intermediate (WTI) futures plummeted more than 7% after hitting a high of $111.34 last week. Leaders from the Group of Seven developed democracies pledged Sunday to phase out or ban the import of Russian oil, adding to concerns. Saudi Arabia, worlds top oil exporter, lowered crude prices for Asia and Europe for June on Sunday. Meanwhile, the number of total active drilling rigs in the United States rose by 7 this week, after an increase of 3 rigs in the week prior, according to new data from Baker Hughes published on Friday. Powered by Commodity Insights