At the end of Thursday US trading the lower price for oil was being attributed, mainly, to the coming again of lockdown to China's largest city of Shanghai. I posted on this Thursday Asia time:
- Another district in Shanghai to be locked down - for mass COVID testing
- China media: "Shanghai Heightens Covid Restrictions After a Spike in Cases Sparks Concern"
Oil had dropped a little lower here again, and the same reasoning is being applied. This on the new jitters in Shanghai:
Reuters oil update for the session so far, in breif:
- Oil prices fell on Friday but still hovered near three-month highs, with fears over new COVID-19 lockdown measures in Shanghai outweighing solid demand for fuels in the world's top consumer United States.
- "Shanghai's new pandemic restrictions raised concerns over demand in China," said Kazuhiko Saito, chief analyst at Fujitomi Securities Co Ltd. "But losses were capped by expectations that tight global supply will continue with solid U.S. demand for fuels and slow increase in crude output by OPEC+," he said.
This is an hourly chart. If you check out longer-term candles (days, weeks) you'll see the extent of the upswing in the oil price. I doubt bulls will be breaking a sweat over the wee dip so far today: