Oil nosedived more than 5% on intensifying concerns over the demand outlook

International benchmarks for crude oil extended losses on the second trading day of the year, Wednesday, 4 January 2023 on intensifying concerns over the demand outlook following weak China’s manufacturing report accompanied by the worsening COVID-19 outbreak in this market. Meanwhile, the tight labour market in the US also stoked expectations that the FED might keep interest rates higher for longer.

Brent plunged $4.26 or 5.2% to close at $77.84/barrel.

WTI dived $4.09 or 5.3% to settle at $72.84/barrel.

Both benchmarks have lost 9.6% and 9.4% respectively this week.