Oil prices drop amid China COVID curbs, possible rate hikes

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Oil prices drop amid China COVID curbs, possible rate hikes
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Oil prices fell on Monday with the global fuel demand outlook overshadowed by COVID-19 restrictions in China and the potential for further interest rate hikes in the United States and Europe.

Brent crude futures dropped $1.28, or 1.4%, to $91.56 a barrel by 0330 GMT, after settling 4.1% higher on Friday. U.S. West Texas Intermediate crude was down $1.34 at $85.45 a barrel, or 1.5%, after a 3.9% gain in the previous session.

"The overall negatives seem to outweigh the positives," said Yeap, adding the $85 mark for Brent crude prices could be in sight. "Demand concerns centred on the impact of rising interest rates to combat inflation and China's COVID-zero policy," Commonwealth Bank of Australia analyst Vivek Dhar wrote in a note.

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