Oil tumbled to the lowest level since December as a wave of unrest in China punished risk assets and clouded the outlook for energy demand, adding to the stresses in an already-volatile global crude market.
West Texas Intermediate sank toward $74 a barrel following three weeks of losses, while Brent traded around $81. Protests over harsh anti-virus curbs erupted across the world’s largest crude importer over the weekend, including demonstrations in Beijing and Shanghai, spurring a broad sell-off in commodities as the week opened. The rare show of defiance is raising the threat of a government crackdown.
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The unrest comes after a sharp pullback in the oil market as the risk of a slowdown in China looms and the European Union floated a price cap on Russian crude that looks set to have minimal impact on trade. Speculators have been forced to markedly reduce bullish bets, posting the sixth-largest reduction in net-long positions on record for Brent last week.
Read more: Bloomberg
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