FX.co ★ Oil Prices Fall On China Lockdown Fears

Oil prices tumbled on Tuesday as new coronavirus restrictions in China, the world's biggest importer of crude, stoked worries about demand.

Benchmark Brent crude futures fell 2.1 percent to $104.82 per barrel, while WTI crude futures were down 2.5 percent at $101.48.

A worsening energy crisis in Europe and a fresh COVID-19 outbreak in China added to worries about a global economic slowdown.

A major gas pipeline from Russia to western Europe shut down for annual maintenance on Monday and is scheduled to be out of action until July 21.

It is feared that the shutdown might be extended as the European Union prepares to impose a phased embargo on Russian oil and ban maritime insurance for any tanker that carries Russian oil.

Rising COVID case counts in several regions fueled talks of another round of painful lockdowns in China, especially in Shanghai or Beijing.

Close to 30 million people now under some form of movement restrictions in China as authorities struggle to stop the spreading of the highly infectious BA.5 Omicron subvariant of the COVID-19 virus.