Oil prices deepen losses, fall 5%

Oil drilling rigs

Oil prices deepened losses today, April 25, falling 5% as global demand concerns resurfaced on the back of a spreading COVID-19 outbreak in China.

Brent crude futures for May delivery were trading down 5.03% at $101.29 per barrel, at 03.00 pm Makkah time.

NYMEX crude contracts for May delivery also slipped 5.13% to $96.83 a barrel.

China, the world’s biggest crude importer, is heading for the worst oil demand shock since the early days of the pandemic, as the nation’s demand for gasoline, diesel and aviation fuel in April is expected to slide 20% from a year earlier, Bloomberg reported, citing sources with inside knowledge of China’s energy industry.

This is equivalent to a drop in crude oil consumption of 1.2 million barrels a day, they said.

Meanwhile, the European Union is discussing measures to restrict oil imports from Russia. That could tighten the market and drive prices higher.