[Asia Economy Reporter Kim Hyunjung] International oil prices are extending their decline amid concerns over weak demand due to China's strengthened COVID-19 prevention measures.
According to Bloomberg on the 24th (local time), June delivery West Texas Intermediate (WTI) crude oil futures fell more than 2% on the day, trading below $100 per barrel. As of 9:27 a.m. local time, the price stood at $99.34 per barrel, down 2.7%.
Earlier, Shanghai reported a record number of daily deaths over the weekend, and Beijing authorities are worried about the virus spreading. The report emphasized, "The world's largest oil importer is experiencing the worst oil demand shock since the early days of COVID-19," adding, "This is adding further volatility to the oil market already shaken by Russia's invasion of Ukraine."
China is enforcing multiple city lockdowns as it maintains its zero-COVID policy. Residents in the Beijing area have been ordered to undergo nucleic acid testing for three days starting from the 25th, while Shanghai remains under lockdown for the fourth consecutive week.
Citing analyses from experts familiar with China's energy industry, the report forecasted that China's demand for gasoline, diesel, and aviation fuel will decrease by 20% year-on-year in April. On a daily basis, this translates to a reduction of 1.2 million barrels in crude oil consumption.
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