Oil closes lower on demand concerns, Brent below $98

Oil drilling rigs

Crude oil closed lower today, Nov. 7, amid concerns of demand slowdown as China continued with lockdowns related to COVID-19. Chinese health ministry officials on the weekend reiterated their commitment to a strict COVID-19 containment approach, thwarting hopes of an oil demand recovery at the world's largest crude importer.

However, concerns about weak supplies in the global oil market and the decline of the US dollar supported oil prices today.

According to the latest data, China's exports contracted for the first time since May 2020, while oil imports rose to the highest level in five months.

Meanwhile, S&P Global said an oil price cap from the G7 nations will not stop China and India from quietly snapping up Russian crude, thanks to the help of smaller insurance companies who are willing to cover the sales. In terms of trading, Brent crude declined 0.6%, or 65 cents, to settle at $97.92 a barrel. WTI crude decreased by 0.9%, or 82 cents, to reach $91.79 a barrel.