Shanghai will (perhaps) come out of the lockdown, and oil prices rise
Oil prices surpassed $ 113 a barrel on optimism that China's lockdowns are coming to an end and that demand will not suffer long-term damage. It seems that the number of cases in Shanghai is running out so segregation should end in a week.
Brent was trading at $ 113.6 a barrel at 13:38 EST, while WTI was trading at $ 113.5.
Shanghai authorities on Monday said the restrictions would finally loosen, in stages, after nearly six weeks of lockdowns that rocked the Chinese economy and disrupted global supply chains. On June 1, Shanghai is expected to see an end of lockdowns, with a gradual easing starting on May 21.
"From June 1 to mid and late June, as long as the risks of a return of infections are controlled, we will fully implement epidemic prevention and control, normalize management and fully restore normal production and life in the city," quoted the deputy. Guardian Mayor Zong Ming said Monday.
The announcement comes shortly after downward pressure was exerted on oil prices due to new releases of weak Chinese economic data and signaled that the European Union's plans to ban Russian oil had faltered.
On Monday, China released official economic data, which shows a significant slowdown, with industrial production down nearly 3% yoy in April and retail sales down about 11%. Volumes at Shanghai's ports also decreased by 40%, according to DW.
This decline in economic activity had led to a very sharp reduction in oil demand, which had brought prices down to just above $ 100. Now this limitation is about to end, the demand to rise and with the prices. To the delight of European consumers.
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The article Shanghai (perhaps) will come out of the lockdown, and oil prices are rising comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/shanghai-forse-uscira-dal-lockdown-e-i-prezzi-del-petrolio-crescono/ on Tue, 17 May 2022 06:00:13 +0000.