Oil Falls Amid Signs of Languid Demand as Libya Increases Output
- China Covid cases at two-month high, US gasoline stocks grow
- Low open interest for crude oil exacerbates market moves
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Oil slumped as rising Covid cases in China and stalling rates of US gasoline consumption ignited demand fears, while low trading volumes continued to exacerbate market moves.
West Texas Intermediate settled around $96 a barrel after falling 3.5% on Thursday. The slump comes as China’s virus cases hover at a two-month high, posing a challenge to the oil-consuming country’s Covid Zero strategy. Open interest across the main futures contracts hovers around six-year lows, leaving the market vulnerable to sharp moves.