Oil prices plunged lower in the Asian session after being driven by concerns over a new contagion of Covid-19 in Beijing and a prolonged shutdown move in Shanghai will weigh on global demand.
Ahead of the European session, Brent crude futures were down at $ 103 a barrel, with a decline recorded around 2.7%. U.S. WTI trading fell 2.9% bringing it to a gloomy trade at around $ 98.70 a barrel.
Following the Covid-19 zero policy, sanctions measures are still being implemented in Shanghai especially in the affected areas. A total of 51 new deaths were reported on Monday compared to 39 the previous day, making it the highest figure recorded since the new wave began.
Following that, the country's demand for petrol, diesel and aviation fuel in April is expected to decline 20% from the previous year, citing a Bloomberg report.
This is compounded by reports of a Covid-19 outbreak in Beijing that is feared to trigger new closure measures in the capital.
Meanwhile, Libya's National Oil Corporation (NOC) said several oil product storage tanks were among dozens of sites damaged at refineries, affecting 120,000 barrels of oil a day due to armed clashes earlier this week.
Although still under investigation, but preliminary assessments show at least 29 sites including oil product tanks and other tanks have been affected. However, the news failed to lift the Covid-19 uncertainty-squeezed crude oil trade in China.
