Stock Groups

Oil slumps as Shanghai shuts to curb COVID surge -Breaking

by Mike Robinson

[ad_1]

© Reuters. FILEPHOTO: An employee holds a pump to fill a car with petrol at Mumbai Fuel Station, India. May 21, 2018. REUTERS/Francis Mascarenhas

MELBOURNE, Reuters – After authorities in Shanghai announced that they will shut down the financial center of China for a COVID-19 test blitz in nine days, oil prices dropped more than $3 on Monday morning.

Futures were down as low at $116.18. They traded at $2.75 (or 2.3%) a barrel at $117.90 at 2215 GMT.

U.S. West Texas Intermediate crude futures fell to $109.90 just after opening. They were then down 2.3% at $111.30, or $2.60 The benchmark contrasts were up 1.4% since Friday.

Shanghai’s municipal government declared on Sunday that factories and companies would stop manufacturing. It also said people could work from home in a lockdown of two stages over the course of nine days. The announcement came after the City reported an increase in COVID-19 infection cases.

The lockdown will further reduce fuel consumption. Public transport including ride-hailing services will be also suspended.

Disclaimer: Fusion MediaThis website does not provide accurate and current data. CFDs are stocks, indexes or futures. The prices of Forex and CFDs are not supplied by exchanges. They are instead provided by market makers. As such, the prices might not reflect market values and could be incorrect. Fusion Media is not responsible for trading losses that may be incurred as a consequence of the use of this data.

Fusion MediaFusion Media or any other person involved in the website will not be held responsible for any loss or damage resulting from reliance on this information, including charts, buy/sell signals, and data. You should be aware of all the potential risks and expenses associated with trading in the financial market. It is among the most dangerous investment types.

[ad_2]