09-11-2022
(Reuters) - Oil prices fell more than $2 on Tuesday in volatile trade, amid growing concerns about fuel demand with the outbreak of the Corona virus in China, the largest importer of crude, and tension over the results of the US midterm elections.
Brent crude futures for January delivery fell $2.56 to $95.36 a barrel, a loss of 2.6 percent, and US crude fell $2.88, or 3.14 percent, to $88.91 a barrel upon settlement.
On Monday, the two benchmarks hit their highest level since August, supported by reports that China's leaders are considering removing the country's strict restrictions related to combating Covid-19.
But new cases rose in Guangzhou and other Chinese cities, dimming prospects for easing restrictions.
Investors, already worried that rising inflation and higher interest rates could lead to a global recession, will also watch US consumer price data on Thursday.
On Tuesday, the US Energy Information Administration cut its forecast for US energy demand for 2023, and also forecast that US production next year will be 21 percent lower than previously expected.