International oil prices fell on the 25th (local time) due to concerns over falling demand due to the economic slowdown as Shanghai and others entered the lock down due to the spread of COVID-19 in China.
On the New York Mercantile Exchange (NYMEX), the June delivery of U.S. West Texas crude oil closed at 98.54 dollars per barrel, down 3.53 dollars from the previous day and 3.5 percent from the previous day.
On the London International Futures Exchange (ICE), the delivery of North Sea benchmark oil Brent crude oil in June also closed at $102.32 per barrel, down $4.33 and 4.1 percent from the previous day.
In China, Shanghai’s lockdown measures are prolonged as the number of COVID-19 patients continues to surge. Major cities such as the capital, Beijing, also have many observations that containment measures are imminent as the number of COVID-19 infections increases. Beijing’s Chaoyang District, with a population of 3.5 million, has designated some areas at risk of infection spread in the district as temporary management and control areas, and residents in the area are not allowed to leave the residential complex unless they have essential reasons.
In China, the largest importer of crude oil, there is a growing sense of alert that expanding behavioral restrictions will reduce demand for crude oil.
Speculation that China’s economic slowdown is likely to bring down the global economy has fueled selling. Experts diagnosed that as the dollar rose against major currencies such as the euro, crude oil traded in dollars became relatively expensive, which also led to selling.
