Shanghai Covid: Oil prices plummet when the city declares a state of emergency.

As China launches a city-wide lockdown in Shanghai, global oil prices have dropped. While officials conduct Covid-19 testing, the city will be shut down in two parts over the course of nine days. Concerns that the decision would lead to a drop in oil demand caused Brent crude to drop more than $3 a barrel. China’s greatest shutdown since the coronavirus pandemic began more than two years ago began on Monday. Shanghai’s public transportation has been halted, while businesses and manufacturers have been told to shut down or operate remotely. The lockdown will start on Monday, with the eastern section of Shanghai, which includes the city’s financial district, going under lockdown on Friday. Meanwhile, the Shanghai Composite market index began the day negative before recovering to trade 0.13 percent lower by noon.