Oil prices dip as COVID-19 cases soar in China

Gulf Today Report 

Oil prices slipped on Friday, slipping from its 11-month highs due to concerns of the new pandemic restrictions in China affecting demand.

US West Texas Intermediate (WTI) crude futures dropped 53 cents, or 1%, to $52.60 a barrel while Brent crude futures fell 45 cents, or 0.8%, to $55.65 a barrel.

Axi chief market strategist Stephen Innes said,"indeed, investors are struggling to see through short-term pain for long-term gain heading into the weekend as COVID case counts in China are the most significant demand concern for traders." 

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Shanghai reported its first case in two months on Thursday and Beijing is urging people not to travel for the upcoming Lunar New Year holiday.

In a note, consultancy FGE said, a seasonal boost to China's gasoline demand that is typically seen during the New Year holidays will be moderated by the tightened restrictions this year.

The market is awaiting official oil inventory data from the US Energy Information Administration on Friday, after industry data on Wednesday showed a surprise 2.6 million barrel increase in US crude inventories last week compared with analysts' forecasts for a 1.2 million barrel draw.