Zhang Mengying

Investing.com – Oil was down on Friday morning in Asia as worries over new COVID-19 lockdown measures in Shanghai grew despite a robust fuel demand in the U.S.

WTI futures dropped 0.65%, to $122.20 (11:02 GMT), and Brent fell by 0.71% at $122.20. Brent will see a fourth straight weekly increase, while WTI has a seven-week streak of increases.

after China’s largest economic hub recorded a cluster outbreak of COVID-19, which adds to the market worries about denting global fuel demand.

“Shanghai’s new pandemic restrictions raised concerns over demand in China,” said Fujitomi Securities Co. Ltd. chief analyst Kazuhiko Saito.

“But losses were capped by expectations that tight global supply will continue with solid U.S. demand for fuels and slow increase in crude output by OPEC+,” he said.

However, the decline in crude oil prices was slowed by strong U.S. fuel demand during peak summer driving seasons.

Last week, the Organization of the Petroleum Exporting Countries plus its allies (OPEC+), agreed to increase oil production to help curb skyrocketing prices. There is not enough space to allow producers to boost their production.