Oil is falling due to problems with COVID in China and an increase in reserves

Negative forecasts for demand in China led to a decline in oil price for the third day in a row. Also, the price was affected by the industry report data, which indicates an increase in U.S. reserves.

China recorded an increase in the number of infections. It represents the difficulties faced by the Covid Zero strategy. Strict limitations and mass testing are failing.  On Wednesday, 78 new cases of infection were registered in Beijing. The number of cases in the capital reached the highest level in more than five months.

The American Petroleum Institute in the U.S. announced data on oil reserves. Analysts had expected an increase of 1.1 million barrels last week. It exceeded expectations and the increase was 5.61 million barrels.

The U.S. is having a midterm election. Traders are monitoring the results and changes in the positions of Senate and House representatives. The shift in power could have a negative impact on President Joe Biden's legislative agenda and on the U.S. dollar, resulting in a decrease in prices for oil and other commodities.