Oil Prices Reverse Gains

Oil Prices Reverse Gains
Oil Prices Reverse Gains

Oil prices pared earlier gains and fell on Monday, dragged down by a firmer US dollar and record high coronavirus cases in major Chinese cities that dashed hopes of the reopening of the economy of the world's biggest crude importer.
Contracts for Brent crude and US West Texas Intermediate had edged up nearly 1% earlier in the session but later reversed their trajectory and headed lower, CNBC reported.
Brent crude futures were down 32 cents, or 0.3%, to $95.67 a barrel after settling up 1.1% on Friday while WTI crude futures fell 39 cents, or 0.4%, to $88.57 a barrel after closing Friday's session 2.9% higher.
"USD strength appears to be weighing on oil and the broader commodities complex this afternoon," said Warren Patterson, the head of commodities strategy at ING. 
"There probably is also an element where the market got a bit ahead of itself on Friday following an easing in China's Covid-related quarantine measures."
Commodity prices rallied on Friday after China's National Health Commission adjusted its Covid prevention and control measures to shorten quarantine times for close contacts of cases and inbound travelers, and eliminate a penalty on airlines for bringing in infected passengers.
But Covid cases climbed in China over the weekend, with Beijing and other big cities reporting record infections on Monday.

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