FX.co ★ Oil Futures Settle Lower As Demand Concerns Resurface

Crude oil prices drifted lower on Thursday as demand concerns resurfaced following authorities in Shanghai imposing new Covid-related restrictions.

According to a Reuters report, Shanghai has announced another round of mass testing for millions of residents. The city will lock down a district of 2.7 million people on Saturday to conduct mass coronavirus testing, city authorities said.

Shanghai and Beijing had earlier this week eased heavy curbs on activity aimed at discouraging the spread of the virus.

Data showing a drop in gasoline inventories in the U.S. last week had lifted oil prices sharply in the previous session.

West Texas Intermediate Crude oil futures for July ended down by $0.60 or about 0.5% at $121.51 a barrel.

Brent crude futures were down $0.76 or 0.61% at $122.82 a barrel a little while ago.

U.S. gasoline stocks fell despite sky-high pump prices, EIA data showed on Wednesday. Stocks fell by a surprise 0.8 million barrels last week contrary to expectations for a 1.1-million-barrel rise.

UAE energy minister Suhai al-Mazrouei has said that efforts by OPEC and allies to boost output are "not encouraging" with the group currently short of its target by about 2.6 million barrels per day.