Asia Crude Oil Prices Drop Following Shanghai Lockdown

TEMPO.CO, Jakarta - Crude oil prices fell in Asian trading on Friday morning, June 10. But the commodity prices are still near their highest levels for the last three months globally. Brent oil futures prices for August, for example, fell US$ 1.01 or 0.8 percent to US$ 122.06 per barrel at 01:41 GMT. The day before, the price of crude oil fell 0.4 percent.

Meanwhile, US West Texas Intermediate (WTI) oil futures for July delivery fell 98 cents, or 0.8 percent, to US$ 120.53 per barrel, a decline that occurred after a 0.5 percent decline the previous day.

With prices rallying over the past two months, Brent is on its fourth straight weekly upward trend and WTI is set for its seventh straight weekly gain. The two benchmark prices on Wednesday, June 8, marked their highest close since March 8, the highest reading since 2008.

Fujitomi Securities Co Ltd chief analyst Kazuhiko Saito explained that the decline in crude oil prices was due to concerns over the lockdown due to the Covid-19 pandemic in Shanghai. 

"The new pandemic restrictions in Shanghai raise concerns over demand in China," he said, Antaranews reported. 

However, he said losses were limited by expectations that tight global supply would continue with strong US fuel demand. "And the slow increase in crude production by OPEC+."

Shanghai and Beijing again warned of the dangers of Covid-19 yesterday, June 9. The government announced it would impose a lockdown after parts of China's largest economic center announced a round of mass testing for millions of residents.

ANTARA

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