On Monday, Brent crude oil prices fell by $1 per barrel. This is due to the renewed concerns about global fuel demand amid tough coronavirus lockdowns in Europe and new restrictions on movement in China. For those who don’t know, China is the world’s second-largest oil user. There the coronavirus infections have jumped in recent times. By 0758 GMT, Brent crude oil futures were down 78 cents, or 1.4%, at $55.21 a barrel. As per a global market strategist, covid hotspots are rising again Asia. More than 11 million people are in lockdowns in China’s Hebei province. Apart from this, there is a touch of Federal Government policy apprehension. This has led to some profit taking out of the gates.
As per Chinese authorities, Mainland China witnessed its biggest daily rise in virus infections in over five months. On Monday, new infections increased in Hebei, which surrounds the capital, Beijing. The provincial capital and epicentre of the new outbreak – Shijiazhuang – is in lockdown. The people and vehicles have been ordered to not come out of their home as the government is looking to control the spread of the virus. As per the Oxford stringency index, most of Europe is now under the severest restrictions. The index takes cognizance of measures such as travel bans and school and workplace closures.
On Sunday, the Saudi crown prince introduced to build a zero-carbon city at NEOM. With an aim to diversify the economy of the world’s largest oil exporter, NEOM is the first major construction project for the $500 billion flagship business zone.