WTI crude futures dropped about 3% to around $74 per barrel on Monday, sinking to the lowest levels since December last year as widespread protests in China over its strict zero-Covid policy hurt investor sentiment and the demand outlook. Oil prices were also pressured by reports that the US granted Chevron Corp a license to resume oil production in Venezuela. The US oil benchmark has entered its fourth straight week of declines as Covid-related uncertainties in top crude importer China and mounting fears of a global recession gripped energy markets.
Meanwhile, traders continued to track developments surrounding a G7 plan to impose a price cap on Russian oil, though reports of a high price cap eased worries that Russia would retaliate by cutting supply. Investors also remain cautious ahead of an OPEC+ meeting on Dec. 4 as the group of major producers is expected to keep supply tight.
