Oil prices fall amid fears of reduced demand

World oil prices declined moderately on Thursday morning amid fears of a demand reduction, Report informs.

The price of March futures for Brent crude fell by 0.24% to $83.79 per barrel, and February futures for WTI dropped by 0.19% to $78.81.

Oil traders closely monitor the epidemiological situation in China, where multiple coronavirus outbreaks have been recorded since early November. At the same time, the Chinese authorities announced the plans to ease the requirements for entering the country in January. After that, several countries, on the contrary, tighten the requirements for arrivals from China.

In connection with the expected easing of restrictions in China, analysts talk about the risks of a new wave of COVID-19 cases worldwide. This could reduce demand for oil and hit prices.

Besides, last night, the American Petroleum Institute (API) reported that commercial oil reserves in the country for the week until December 23 decreased by 1.3 million barrels. Later on Thursday, the US Department of Energy will publish official data on weekly oil inventories in the country. The forecast assumes their decline by 1.5 million barrels - to 416.7 million barrels.