Oil slumps 3% on demand concerns, Brent below $96

Oil drilling rigs

Oil prices closed lower today, Nov. 8, amid concern about China’s zero-COVID policy and its repercussions on demand.

The Chinese authorities reaffirmed their commitment to the zero-COVID strategy, which includes continued restrictions and lockdowns to prevent the spread of the virus.

Meanwhile, the US Energy Information Administration cut its forecast for oil production in the US to 12.31 million barrels per day for the next year, easing for its earlier estimates of a new record level of 12.36 million barrels.

The agency raised its expectations for WTI crude price in 2022 and 2023 to $95.88 and $89.33 per barrel, respectively. It also increased its 2023 estimates on Brent crude to $95.33 per barrel.

In terms of trading, Brent crude fell 2.6%, or $2.56, to $95.36 a barrel upon settlement.

WTI crude decreased 3.1%, or $2.88, to $88.91 a barrel.