Still Bullish on Oil

Wall Street Minute : Oil prices slid Monday, accelerating two straight weeks of declines as lockdowns in China sparked demand fears.

International benchmark Brent crude declined 3.8%, or $3.85, to trade at $98.91 per barrel. West Texas Intermediate crude futures, the U.S. oil benchmark, shed $3.59, or 3.7%, to trade at $94.73 per barrel. Earlier in the session it traded as low as $92.93.

“The spread of Covid in China is the most bearish item affecting the market,” said Andy Lipow, president at Lipow Oil Associates. “If [Covid] spreads throughout China resulting in a significant number of lockdowns, the impact on oil markets could be substantial.”