NYMEX crude down by more than 4%, Brent below $99

Oil drilling rigs

Oil prices deepened losses today, April 11, hit by concerns over Russia-Ukraine tensions and the recent spike in COVID-19 cases in China.

Shanghai continued to record spikes in COVID-19 infections, logging a record level of more than 26,000 new cases was posted on April 10, coupled with a state of uncertainty about when precautionary restrictions will be lifted.

Wood Mackenzie sees the current wave of the epidemic in China and the newly-extended lockdown across the country resulting in weaker demand for gasoline and jet fuel by 750,000 and 600,000 barrels per day in March and April, respectively.

European Union (EU) officials will hold talks in Vienna today with some OPEC representatives amid calls for the group to raise its oil output, while the EU considers imposing sanctions on Russian crude.

Brent crude was trading down 3.85% at $98.93 a barrel, at 02.30 pm Makkah time.

NYMEX crude futures for May delivery also slipped 4.3% to $94.03 per barrel.