Oil prices plunged on Monday as China began its most extensive lockdown in two years, raising concerns over weaker fuel demand.
Benchmark Brent crude futures fell 3.6 percent to $113.12 per barrel, while U.S. WTI crude futures were down 4.1 percent at $109.23.
Millions of people in China’s financial hub were confined to their homes today as the eastern half of Shanghai went into lockdown to curb the nation’s biggest Covid-19 outbreak.
Shanghai said on Sunday it would lock down the city in two stages to carry out Covid-19 testing over nine days.
On top of this, Yemen’s Houthi rebels on Saturday announced a three-day unilateral cease-fire with the Saudi-led coalition.
Ongoing peace talks between Russia and Ukraine and OPEC’s next ministerial meeting on Thursday also remain on investors’ radar.
Russia and Ukraine will restart face-to-face peace negotiations today after the former signaled that it may scale down its war and aims to concentrate on eastern Ukraine.
Ukraine President Zelenskyy also said he wants to make a deal with Moscow over Donbas and he is willing to discuss adopting a neutral status too.
The Donbas region has been partly controlled by Russian-backed separatists since 2014.