Below $100, US oil sinks as China Covid concerns spread

INA – SOURCES 
 
Oil prices fell sharply on Monday, as lockdowns in China stoked concerns that the country's zero-Covid strategy will sap energy demand in the world's second-largest economy.
 
US oil dropped 5.6% to a two-week low of $96.33 a barrel Monday morning, while Brent, the world benchmark, fell 4.9% to $101.43 a barrel.
 
The overriding sentiment today is bearish due to the China Covid lockdowns, according to Andy Lipow, president of consulting firm Lipow Oil.
 
Chaoyang, one of the largest districts in China's capital city Beijing, announced Sunday it will launch mass testing for people who live and work in the district.
 
In a bid to contain an outbreak described as "urgent and grim," Beijing authorities have locked down dozens of residential compounds across eight districts, banning residents from leaving their homes or the complex. Residents rushed to stock up on basic goods amid lockdown concerns.
 
"Rising cases and lockdowns appear set to increasingly crimp demand in one of the leading oil consumers in the world," said Matt Smith, lead oil analyst, Americas, at analytics company Kpler.