By Gina Lee

Investing.com – Oil was down on Monday morning in Asia, tumbling around $4 as sparked fuel demand concerns.

By 12:40 ET (04:40 GMT), the price of Brent and WTI futures had fallen 2.68%, to $114.22 each. Then they fell 3.03% to $110.45. Brent and WTI futures both rose 1.4% Friday to record their first week-end gains in three weeks.

This week looks uncertain, as the second month of the Ukrainian war triggered by Russia’s invasion of February 24th will be full.

China, which is the biggest crude importer in the world, has also increased its lockdowns to combat COVID-19. Shanghai’s factories and firms would either suspend production or allow remote workers to work in two stages for nine days. All public transport including ride-hailing will be stopped.

Kazuhiko Sakato, chief analyst at Fujitomi Securities Co Ltd. said that the lockdown in Shanghai prompted investors to sell off again as they were disappointed.

The market had factored in the impact of a missile attack on a Saudi oil distribution facility the previous Friday, but “as the Organization of the Petroleum Exporting Countries and allies (OPEC+) is less likely to raise oil output at a faster pace than the recent months, we expect the oil market to turn bullish again later this week,” he added.

Yemen’s Houthis said on Friday that they launched attacks on Saudi energy facilities, hitting Aramco’s petroleum products distribution station in Jeddah and causing a fire in two storage tanks. No casualties have been reported.

OPEC+ member countries will meet Thursday. However, producers from the U.S. have been calling for more production. The cartel is sticking to a plan of increasing output by 400,000 barrels per month (bpd) since August 2021.

According to reports, the U.S. may also consider another release from its Strategic Petroleum Reserve. This could go beyond the 30 million barrels sold earlier this month.

Fujitomi’s Saito stated that additional release could lead to fears about a shortage in already-lower inventories, which would limit future release. Global stockpiles are at their lowest point since 2014.