Oil price drops due to recession fears and China's restrictions to combat COVID-19

Oil prices fell nearly $1 on Monday, July 11th, in volatile trading, after fears of a recession and China's curbs to combat COVID-19 outweighed persistent concerns about a supply shortage.

Brent crude futures fell 82 cents, or 0.8%, to $106.20 a barrel by 03:14 GMT.

US West Texas Intermediate crude futures fell $1.04, or 1%, to $103.75 a barrel.

Trading was thin due to a public holiday in parts of Southeast Asia.

This and both contracts recorded a weekly decline last week, after fears that rising interest rates to curb inflation might lead to a recession and weaken demand for oil dominated the market.