Oil falls as China expands COVID-19 restrictions

According to Reuters agency, the fall in oil prices was fueled by concerns that new coronavirus-related restrictions in China would reduce demand to offset production cuts at the largest US shale oil field.

Stephen Innes from SPI Asset Management said that more serious anti-pandemic restrictions in China constantly cause the concerns that level of demand from the major oil importer will change. 

Chinese cities are stepping up control measures against the epidemic as outbreaks grow. It weakens the certainty that demand will recover.

The warnings came as U.S. oil sales hit a record high last week. To a certain extent, it led to an increase in the price of WTI oil. The growth was more than 3%. Also, the price of Brent oil rose last week. This has been going on for the second week in a row.