Oil prices drop amid China COVID curbs, possible rate hikes

Oil prices fell on Monday with the global fuel demand outlook overshadowed by COVID-19 restrictions in China and the potential for further interest rate hikes in the United States and Europe, Reuters reported.
Brent crude futures LCOc1 dropped $1.28, or 1.4%, to $91.56 a barrel by 0330 GMT, after settling 4.1% higher on Friday. U.S. West Texas Intermediate crude CLc1 was down $1.34 at $85.45 a barrel, or 1.5%, after a 3.9% gain in the previous session.
Prices were little changed last week as gains from a nominal supply cut by the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, a group known as OPEC+, were offset by ongoing lockdowns in China, the world’s top crude importer.
China’s oil demand could contract for the first time in two decades this year as Beijing’s zero-COVID policy keeps people at home during holidays and reduces fuel consumption.