⛩ Oil slides as Shanghai lockdown threatens economic activity and oil demand in China
A strong downward move can be spotted on the oil market at the beginning of a new week. Both WTI and Brent trade 4% lower each. Drop is fuelled by news of lockdown being imposed in major Chinese financial and industrial hub - Shanghai. Shanghai is also one of the most important Chinese trading hubs but trading activity may not be as impacted as ports are expected to remain open. This is another important economic hub that has been put under lockdown, highlighting that Covid is getting out of control in China. This is a risk for the global economy as a slowdown in China is likely to hamper economic activity in other parts of the world as well. Half of Shanghai was put under lockdown until the beginning of April while the other half will be put into a 5-day lockdown at the beginning of April. Apart from oil, Chinese indices and copper also dropped today (around 1%).
OIL.WTI trades over 4% lower and breakss below $110 per barrel. Key support zone can be found in the $101 area, near the upward trendline. Source: xStation5
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