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Oil Plunges 6.5% as China Lockdowns Spread

Oil futures plunged nearly 6.5 percent on Monday as traders assessed the impact of anti-Covid lockdowns in China.

Oil Plunges 6.5% as China Lockdowns Spread

The price of West Texas Intermediate crude futures, the U.S. benchmark, dropped 6.5 percent to $95.38 a barrel. Brent crude, the global benchmark, fell by 6.4 percent to $99.76 a barrel. Stocks were down sharply in China on Monday.

The Shanghai Composite Index fell 5.13 percent. Hong Kong’s Hang Sen index was down by 3.7 percent.

The reaction in the U.S. stock market was more muted.

The Dow Jones Industrial Average fell 1.4 percent.

The S&P 500 declined 1.62 percent.

The Nasdaq Composite was off by 0.8 percent.

The Russell 2000 index of smaller companies dropped 1.1 percent.

The lockdowns in China are expected to slow its economic growth, lowering demand for commodities.

They could also further ensnarl supply chains, hurting growth around the globe.

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