LONDON, Jan 4 (Reuters) – Oil fell sharply on Wednesday after slumping in the previous session, weighed down by demand concerns stemming from the state of the global economy and rising COVID cases in China.
Brent futures fell $3.04 to $79.06 a barrel for a 3.7% loss by 1452 GMT. U.S. crude dropped $2.91, or 3.8%, to $74.02.
Both benchmarks plunged more than 4% on Tuesday, with Brent suffering its biggest one-day decline in more than three months.
“Worries about the state of the global economy are front and centre of traders’ minds and will remain so for the foreseeable future,” said PVM Oil analyst Stephen Brennock.
The Chinese government also increased export quotas for refined oil products in the first batch for 2023, signalling expectations of poor domestic demand.
Top oil exporter Saudi Arabia could cut prices for its flagship Arab Light crude grade to Asia in February, having been set at a 10-month low for this month, as concern…
