Global Oil Market Flashes Warnings as Demand Concerns Spike
- Premium of Oman futures to Dubai swaps hits seven-month low
- China’s struggle to contain Covid-19, lockdowns hurt outlook
Expectations for a recovery in Chinese oil demand are fading as daily Covid-19 cases have hit record levels.
Photographer: Toru Hanai/BloombergThis article is for subscribers only.
The global oil market keeps sending up flares on the outlook for weaker demand. In the latest, a closely-watched gauge of Asian crude consumption tumbled to a seven-month low as surging virus cases in China trigger lockdown-like restrictions in the world’s biggest importer.
The premium of Oman futures over Dubai swaps fell below $1 a barrel on the Dubai Mercantile Exchange on Thursday. It’s plunged about 80% this month.