Oil falls as worry over rise in COVID cases in China

Oil prices fell on Friday amid increasing COVID cases in China, the world’s largest oil importer and economic slowdown worry.

International benchmark Brent crude traded at $83.86 per barrel at 10.15 a.m. local time (0715GMT), a 0.20% decrease from the closing price of $84.03 a barrel in the previous trading session.

The American benchmark West Texas Intermediate traded at $78.31 per barrel at the same time, a 0.10% loss after the previous session closed at $78.39 a barrel.

Concerns that increasing COVID-19 cases in China could delay economic recovery push prices lower.

The country stopped reporting case numbers after the measures were lifted at the beginning of last month, but health officials in several big cities in the country are reporting that the majority of the population is already infected.

A leaked document showed the spread in the capital Beijing and cities such as Guangzhou and Shanghai caused 248 million new infections between Dec. 1-20.

Health experts predict that if the mass spread continues in China, 70% of the country’s population will be infected during the winter months.

Meanwhile, global growth is expected to slow further this year, as central banks raised interest rates to combat rising prices.

IMF chief Kristalina Georgieva warned Thursday that, it will be a difficult year and the global economy continues to be fragile.

Inflation remains stubbornly high and the cost of living crisis is not over, Georgieva added.

• International benchmark Brent crude traded