Oil futures lost more than $2 a barrel in early trading today, Monday, with US West Texas Intermediate crude falling to its lowest level in 11 months, at a time when protests in China - the largest oil importer - over the strict restrictions of Covid-19 fueled concerns about... the demand.

Brent crude fell $2.16, or 2.6%, to trade at $81.47 a barrel at 2:30 pm, after falling to $81.16 earlier in the session, its lowest level since January 11, and is currently trading at $81.4 a barrel. .

US West Texas Intermediate crude fell $2.08, or 2.7%, to $74.20 a barrel.

US crude fell to $ 73.82 earlier, its lowest level since December 27, 2021. It is currently trading at $ 73.84 a barrel.

Both benchmarks, which hit 10-month lows last week, posted 3 consecutive weekly declines.

Brent ended the last week down 4.6%, while WTI fell 4.7%.

Hiroyuki Kikukawa, general manager of research at Nissan Securities, predicted the WTI trading range would drop to $70-$75.

He said the market could remain volatile depending on the outcome of the OPEC+ meeting and the Russian oil price cap.

China - the world's largest oil importer - has adhered to President Xi Jinping's zero Covid policy even as much of the world has lifted most restrictions.

Roofing the price of Russian oil

Diplomats from the Group of Seven and the European Union have discussed capping the price of Russian oil at between $65 and $70 a barrel, aiming to limit revenues to fund Moscow's military offensive in Ukraine without disrupting global oil markets.

But EU diplomats said a meeting of EU government representatives, which was scheduled for the evening of November 25 to discuss the issue, had been cancelled.


The Russian oil price cap is set to take effect on December 5, when the European Union's embargo on Russian crude begins.

Investors are also focusing on the upcoming meeting of OPEC Plus, which includes the Organization of the Petroleum Exporting Countries and its allies, on the fourth of next December.

And OPEC Plus had agreed last October to reduce the target level of its production by two million barrels per day until 2023.

Gold dip

Gold prices fell today, Monday, after the dollar rose due to the demand for a safe haven, which was sparked by protests in many Chinese cities over the strict restrictions to combat the Corona virus.

The spot gold price decreased 0.4% to $1,749 an ounce at 3:14 GMT.

US gold futures fell 0.2% to $1,749.90.

The dollar index rose 0.4%, making US dollar-denominated bullion more expensive for buyers who hold other currencies.

"Gold prices are closely tracking the movements of the US dollar, and it seems that the increasing uncertainty due to the growing unrest in China has supported the dollar this morning," said Yip Dezm Rong, market analyst at IG.

For other precious metals:

  • Silver fell 1.8% to $21.21 an ounce.

  • Platinum fell 0.3% to $978.

  • Palladium fell 0.3% to $1,846.94.