Oil prices fell in choppy trade on Wednesday as fears of a global recession and concerns about rising COVID-19 cases in China, the world's top oil importer, took center stage.
The downside remained capped amid news that Russia aims to ban oil sales from Feb. 1 to countries that abide by a G7 price cap imposed on Dec. 5.
Benchmark Brent crude futures dropped 0.3 percent to $84.42 a barrel and WTI crude futures were down half a percent at $79.14, as industry group American Petroleum Institute reports data on U.S. crude inventories later in the day.
Media reports suggest that Chinese hospitals and funeral homes are overwhelmed due to a surge in COVID-19 infections as the country moves away from its hardline zero-COVID policy.
There is uncertainty over the true scale of infections in China due to lack of reliable official figures.
China has stopped publishing daily COVID data, but media reports now suggest that the country will eventually publish data on COVID-19 cases once a month when the disease comes under Category B management.
China's reopening buoyed the outlook for oil, but analysts say that it is difficult for demand to recover in a short time as the virus spreads largely unchecked across the country of 1.4 billion people.
After China announced the re-opening of borders in a major shift of its epidemic response policies, several countries have announced safety measures like testing and medical scrutiny of passengers, coming from China and other countries where the virus is prevalent.
For comments and feedback contact: editorial@rttnews.com
Market Analysis
December 26, 2025 08:42 ET Third quarter economic growth data from some major economies including the U.S. were the main news in this holiday shortened week. GDP growth and industrial production data from the U.S. helped to boost morale, while the consumer confidence survey results were less upbeat. In Europe, the quarterly economic growth data from the U.K. drew attention, while the minutes of the Australian central bank’s latest policy session was in focus in Asia.