Oil down as rise in China COVID cases weaken demand outlook

- Spike in COVID cases in China caused expectations of demand increase to falter

Oil prices decreased on Thursday as an increase in COVID-19 cases in China, the world's largest crude importer, diminished hopes of an oil demand recovery.

International benchmark Brent crude traded at $83.14 per barrel at 10.18 a.m. local time (0718GMT), down 1.01% from the closing price of $83.99 a barrel in the previous trading session.

American benchmark West Texas Intermediate (WTI) traded at $78.22 per barrel at the same time, a 0.94% loss after the previous session closed at $78.96 a barrel.

The spike in COVID cases in China this week caused expectations of a demand increase to falter.

Italy, Japan, Taiwan, India and the US plan to impose COVID testing on travelers from China. China is opening its borders from travel from Jan. 8.

The world's most populous nation dumped its strict 'zero-COVID' policy this month, following unrest and unprecedented protests in parts of the country.

China's National Health Commission (NHC) said it would report monthly case numbers instead of daily. The decision comes as China contends with an alarming rise in infections, while the number of fatalities has also reportedly spiked.

Meanwhile, American Petroleum Institute estimates US crude oil inventories to fall by 1.3 million barrels in the week ending Dec. 23.

By Zeynep Beyza Kilic

Anadolu Agency

energy@aa.com.tr